Filing resolutions takes time, expertise and resources. More importantly, corporations often view proposals antagonistically, and they respond legalistically. The process usually takes months. Although, shareholders may use proposals to address employment discrimination, the SEC will not support shareholder proposals that address wage and benefit issues. In discussions with corporations, the Equality Project does press the case for DP benefits.
Companies can challenge shareholder resolutions on many grounds.
A corporation can omit a resolution from its proxy ballot if it can argue successfully to the SEC that the proposal violates rules for proposals set out in the 1934 Securities Exchange Act. Thus it is critical that stockholders study previous proposals that have survived corporate challenges in order to submit properly-worded proposals that will make it to the ballot. Corporations which petition the SEC for permission to exclude a shareholder proposal must send a copy of their challenge to the shareholder. The sponsor's immediate goal is to gain the threshold level of support required by the SEC to resubmit the resolution the following year. They can catalyze discussion between senior managers and shareholders.