NYSE Governance Rules Have Activists Salivating

Shareholder activists, enjoying a kind of renaissance in the wake of Enron and other recent fiascos, say corporate governance regulations being proposed by the New York Stock Exchange are a light at the end of the tunnel.

"The rules will give shareholders weapons that they didn't have before," said Patrick McGurn, vice president of Institutional Shareholder Services, a proxy advisory firm. "They will level the playing field."

According to the proposal -- which was outlined in press reports over the weekend -- the New York Stock Exchange is seeking to require listed companies' boards to be composed mostly of independent directors. Currently, only three members of a board, no matter its size, need to be independent. ...