Earlier today, New York City’s pension funds announced they had filed a proxy access proposal at Chesapeake Energy. 

The non-binding proposal, which is modeled after SEC Rule 14a-11, asks the board of the Oklahoma-based company to adopt an access bylaw that would require investors to hold a 3 percent stake for at least three years to nominate board candidates, with a 25 percent cap on board seats available to access nominees. A federal court struck down the SEC's rule last July after a challenge by two business groups.  

“The proposal at Chesapeake was filed in response to concerns with the board’s independence from management and its record of ignoring shareowners’ concerns.  The natural gas producer’s board has approved excessive pay packages and other financial perks for its CEO, who is also the board chair,” the city funds said in a press release. “Additionally, after a majority of shareowners voted to declassify Chesapeake’s board--and require its members to seek reelection annually--the company successfully lobbied for a change in Oklahoma law that actually required classified boards at large, publicly-traded firms incorporated in the state.”

So far, ISS is tracking 20 proxy access proposals filed for 2012 U.S. company meetings. A similar proposal has been filed at Nabors Industries, but most of the other resolutions seek more permissive thresholds for access. The SEC has granted requests by six companies to omit access proposals and two challenges still are pending.