The biggest problem with the idea that the proxy advisers need to be reined turns on the fallacy that they are all powerful, something critics repeat a lot. They are not. Just one example, according to a stat in the Wall Street Journal, is that last year proxy advisory firms urged shareholders to vote against approving…
Tag: proxy advisory firms
VEA Comment to the SEC on Proxies, Shareholder Proposals, and Proxy Advisory Firms
The full text is linked below. From the introduction and summary: We begin with three key points as context for this comment, all with one theme: the superiority of market tests over regulation whenever possible (unless there is a collective choice problem distorting the market, which is not the case here). 1. The determining issue…
Bipartisan bill proposes putting proxy firms under SEC’s authority – MarketWatch
We do not expect this bill to be enacted. It appears to be theater to prop up today’s proxy roundtable at the SEC. But it shows how powerful the forces are that are trying to eliminate the one independent source of information and guidance on proxy issues, proxy advisory firms. Six U.S. senators introduced a…
How Funds View and Vote on Shareholder Proposals – Briefing: Governance
Ning Chiu of Davis Polk has some useful data on proxy advisors and fund votes, supporting the conclusion that clients appreciate the analysis of proxy advisory firms but make their own decisions about shareholder proposals: Funds must vote their proxies on behalf of 100 million shareholders in the aggregate and vote based on a range…
ProxyInsight Repudiates Report Claiming Undue Influence of Proxy Advisors
The CEOs behind the fake dark money front groups Main Street Investor Coalition and American Council on Capital Formation have produced a bogus study purporting to show “robo-votes” by professional money managers, alleging they blindly follow the recommendations of proxy advisory firms. Now, in an extraordinary statement, the provider of the data used for the…
Minerva Analytics: Comment on SEC Proxy Roundtable
From Minerva Analytics’ comment to the SEC for the Proxy Roundtable (link to the full comment below): We note the activities of the immensely vocal, but narrow, anti-ESG and governance lobby which continues to ignore and disrespect the beliefs and preferences of capital providers. Investors use governance research and vote execution services to legitimately help…
Morningstar slams hidden backers behind anti-ESG campaign | Portfolio Adviser
Jackie Cook speaks to Portfolio Advisor about the CEO funded fake dark money front group, Main Street Investors Coalition. Their claim to “represent” individual investors is, as we’ve pointed out many times, completely bogus as not one single actual advocate for investors has endorsed or joined them. Morningstar has slammed an anti-environmental, social and governance…
ISS Comment Letter to the SEC on the Proxy Process
ISS has filed its comment letter for the Proxy Roundtable with the SEC. Some highlights: They respond to those who claim that proxy advisors are not regulated and those who claim they control the proxy voting decisions of their clients: “As a registered investment adviser, we have a fiduciary obligation to our clients to provide…
More Useless Sock Puppet Bluster from Fake Front Group Main Street Investor Coalition
Fake dark money front group Main Street Investment Coalition is really getting in a lather about the upcoming November 15 SEC Proxy Roundtable. The instantly discredited CEO-funded astroturf organization is struggling to find anyone who is not self-interested to try to make the case that the only source of truly independent research about corporate governance…
So The SEC’s Decision to Rescind the 14-Year Old Proxy Advisory Rulings Was Apparently a Whim With No Documentation
The government in general and the regulatory agencies and independent commissions in particular have a heavy burden of transparency and documentation to justify their authority to promulgate regulations and issue judgments that have the force of law. Because they are not subject to the electoral oversight of the legislative bodies, there is a huge body…
