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Resources and Advisory Services
Corporate interests accuse proxy advisors (PAs) of all manner of offenses against their companies. Most of all, they resent that ISS and Glass Lewis seem to wield substantial power over corp gov matters, despite considerable evidence to the contrary.

Companies complain that PAs get it wrong, a more serious accusation. Specifically, they claim that PAs don't use correct information when assessing a company. Consequently, the new SEC Staff Legal Bulletin (SLB) on PAs encourages investors to "ensure that...proxy voting recommendations are based on current and accurate information..."

 

As a clear consequence of the new SLB, ISS added yet another means of obtaining "current and accurate information" from the companies it analyses. Their announcement of a verification process for equity comp plans reminds us of how far the PAs go to use "current and accurate information", and indeed how far they go to accommodate the companies they cover.

 

We explain how PAs do this in a current blog post.

Recent TAI blog posts

You can find other useful resources at the TAI website, including our research on "Effective Activism, on the Cheap", our new resource guide on activist investing data sourcesour white paper with the basics on activist investing, and our new guides on exempt solicitationconsent solicitation, and special shareholder meetings. 
For further information, please contact:
 
Michael R. Levin
[email protected]
847.830.1479