Bebchuck Comment on Proxy Advisor Proposal

From Harvard professor Lucian Bebchuck’s comment to the SEC on the proxy advisor proposal: As explained below, the Economic Analysis cannot provide a basis for SEC rulemaking in this area. The Economic Analysis fails in its analysis of both the benefits and the costs of the proposed rule and overlooks significant effects and issues. Below…

Sock Puppet Ike Brannon is Still Lying About Proxy Advisors

Ike Brannon is whining about proxy advisors again on the unedited commentary section of Forbes. We last wrote about Ike Brannon’s anti-proxy advisor propaganda more than a year ago, pointing out that he does not disclose the funders and connections behind his fabricated claims about proxy advisors. Since he does not, we will remind him…

VEA Comment on the SEC’s Awful Proxy Advisory Proposal

The full text of our comment is below. An excerpt: I agree with the Commission’s own advisory committee and the letters on behalf of investors filed by CII, T. Rowe Price, John Coates and Barbara Roper, and others that this proposal is wrongly conceived. Despite the Commission’s rhetoric of support for proxy voting, this proposed…

Economists Comment to SEC Proposal on Proxy Advisors

On January 15, a group of over 60 leading finance professors from major American universities filed the following comment to the SEC to ask a revision of the proposed draft regulation: Dear Chairman Clayton and Members of the Commission: We share the Commission’s concerns about concentration in the proxy advisory market. Yet, we disagree with…

Nell Minow Debates Proposed SEC Rules on Proxy Advisors

On January 13, 2020, at the Stigler Center for the Study of Economy and the State, VEA Vice Chair Nell Minow debated University of Chicago professor Steven Kaplan on the new SEC proposed rules on proxy advisory firms, moderated by Luigi Zingales.

SEC Comment on Proxy Advisors and Proposals from Minerva Analytics

Minerva Analytics has submitted a comment on the SEC’s proposed rules on proxy advisors and shareholder proposals. An except (footnotes omitted): In respect of the SEC’s proposals, our reasons for opposing the proposed regulations that they will: • Severely limit shareholders’ property rights; • Interfere with investors’ commercial and contractual rights to receive research, which…

Carl Icahn: Let Proxy Advisers Do Their Work – WSJ

Investors cast tens of thousands of votes as owners of public companies in any given year. For help with that formidable task, many institutional investors pay proxy advisory firms like Institutional Shareholder Services or Glass Lewis for independent advice. These research organizations publish reports with voting recommendations. More often than not, they end up taking…

Commissioner Lee: Statement on Shareholder Rights

Commissioner Allison Herrren Lee expressed her objections to the Republican Commissioners’ proposed rule on proxy proposals and proxy advisors, starting with the core point that no one has documents any kind of actual problem. There is a common theme that unites the two proposals before us today: they both would operate to suppress the exercise…