Comment to the SEC: Investor-as-Owner Subcommittee of the SEC Investor Advisory Committee (IAC) Relating to SEC Guidance and Rule Proposals on Proxy Advisors and Shareholder Proposals

The SEC’s own Investor-as-Owner Subcommittee of the SEC Investor Advisory Committee does not approve of the proposed rule on proxy advisory firms and proxy proposals. An excerpt: The IAC has long urged the Commission to address a variety of problems in the proxy system, and there are valuable elements in the PA/SP actions, such as…

Republican Operative Holly Turner Posts Appallingly Deceptive Video in Support of Anti-Shareholder Proposal from the SEC

Republican operative and former Trump administration official Holly Turner has posted a  fraudulent video on YouTube urging her followers to support the proposed rulemaking at the SEC to undermine the fundamental market principles of capitalism and suppress shareholder votes and access to independent research.   The disappearance of the fake CEO-funded dark money front group…

Do Corporate Governance Ratings Change Investor Expectations? Evidence from Announcements by Institutional Shareholder Services

We find that rating downgrades by ISS cause negative announcement returns of –1.14%. Thus, rating information is highly relevant for financial markets. We examine whether the information content reflects the underlying corporate governance quality of the firm. We find that announcement returns are lower for downgraded firms with higher potential agency costs. Since the cost…

SEC Proxy Rulemaking: Insightful Comment with Compelling Data from Tom Shaffner

One of the most compelling and persuasively documented comments we have seen on the SEC’s proposed rule on proxy advisory firms and proxy proposals comes from an individual investor and data scientist named Tom Shaffner. We highly recommend reading the comment in full at the link below. Some highlights (footnotes omitted): The more I’ve learned…

Shareholders pay the price for corruption | Minerva-Manifest

Reflecting the materiality of corruption and risk to shareholders, and to mark International Anti-Corruption Day, (Monday, 9 Dec 2019) Minerva is announcing the inclusion of a new anti-corruption metric in its pre-AGM research reports. Alongside indicators for climate change, cyber-security and tax governance, the new corruption indicator and voting guidelines will help investors take an…