During a recent appearance on “Pod Force One,” SEC Chairman Paul Atkins expressed his view that the rise of woke policies and diversity initiatives has created “chaos” on Wall Street, discouraging companies from going public.
Atkins shared his ambition to “make IPOs great again” in his discussion with host Miranda Devine. He indicated that returning to fundamental principles might be key, noting that the current complexities in corporate governance are a significant deterrent for businesses seeking to go public. “They want to avoid distractions that don’t relate to their core issues,” he mentioned.
In December, President Trump had instructed the SEC to investigate two advisory firms criticized for advocating “woke” policies, namely Institutional Shareholder Services (ISS) and Glass, Lewis & Co. These firms have a considerable role in guiding major investors on how they should vote on various company matters. Atkins pointed out that moderating these policies could potentially motivate more startups to consider initial public offerings.
He further argued that while shareholder accountability is crucial, focusing on non-substantive issues can divert attention from essential economic factors affecting a company. “These shareholder groups may have their own agendas,” he remarked, emphasizing the need for the SEC to refocus on basic governance principles. He estimated that the financial burden of social issues on businesses reaches into the billions.
Atkins suggested that transitioning more companies toward public status offers numerous advantages, not just for entrepreneurs but for the broader economy. “One benefit is being able to issue stock as compensation to a larger workforce,” he explained, highlighting how large publicly traded companies leverage stock options for their employees.
He concluded that robust public markets are essential for fostering economic growth, stating that such environments naturally attract more investment, including from foreign entities. “This is how value builds across private companies and contributes to a healthier public market,” Atkins noted.
