Office of the Comptroller of the Currency
Five moderate Democratic senators—Jon Tester, Mark Warner, Kyrsten Sinema, Mark Kelly, and John Hickenlooper—have informed the White House that they will not be supporting Saule Omarova’s nomination to head the OCC.
However, the White House continues to support Omarova. Per one official: “Saule Omarova is eminently qualified for this position. She has been treated unfairly since her nomination with unacceptable red-baiting from Republicans like it’s the McCarthy era.”
Omarova has faced intense opposition from the bank lobby due to her pro-regulatory positions. Her nomination was championed by progressives and environmentalists, who saw her as an ally in the fight to mitigate climate-related financial risks throughout the economy.
The fight may not be over: Yevgeny Shrago of Public Citizen has argued that the Biden administration could override the Senate by appointing Omarova as first deputy comptroller, a position that does not require confirmation, and have her serve as acting comptroller indefinitely.
Corporate Governance
A new report by Institutional Shareholder Services finds that more companies are using environmental and social (E&S) metrics in executive compensation programs.
Across the companies examined, 10 percent used such metrics in 2020, compared to 3.5 percent in 2012. The report finds a sharp rise in E&S metrics from 2019 to 2020.
E&S metrics are more popular at larger companies: the report finds that 20 percent of the S&P 500 use at least one E&S metric to determine executive pay.
International Standard Setters
The International Organization of Securities Commissions (IOSCO), an association of securities regulators from over 100 countries, has called for greater oversight of ESG ratings and data products providers.
From the report: “the role and influence of ESG ratings and data products providers in financial markets more generally, and in the sustainable finance ecosystem specifically, have grown significantly.”
However, the report also finds “little clarity or alignment” on “what ratings and data products intend to measure,” and “a lack of transparency about the methodologies underpinning these ratings or data products.”
The report recommends that ESG ratings and data providers consider using “publicly disclosed data sources, defined methodologies, management of conflicts of interest, high levels of transparency, and [processes for] handling confidential information,” as well as greater due diligence.
