About 9,100 public companies filed proxy statements with the Securities and Exchange Commission ten years ago. However, in 2009, only 6,450 did. The number grows smaller.
As someone who has been a principal in several public companies, and an observer of the corporate scene for many years, I feel there is a major reason. Foreign companies may be fleeing as regulations are getting more onerous. And smaller companies choose to remain private.
Sarbanes-Oxley compliance is a major culprit. The federal requirements are too expensive and place restrictions on management which only plaintive lawyers find just. Being publicly owned is simply too restrictive; operating a business in a governmental tax and spend environment is tough enough. ( See the Earl J Weinreb NewsHole® comments.)
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