Tag Archive for ‘Proxy Advisory Services’
A New York Stock Exchange commission concluded that “failures of corporate governance were not the sole reason for the financial crisis of 2008” and that most public companies “are well governed, with hard-working and ethical boards and shareholders.” The panel also called for new standards for proxy advisory firms.
The commission outlined a concept release seeking public comment on proposals to “promote greater efficiency and transparency in the U.S. proxy system and enhance the accuracy and integrity of the shareholder vote.” And SEC Commissioners, with no debate, unanimously approved issuing the concept release for a 90-day public comment period.
Proxy advisory services play a key role because institutional holders turn to them for advice when voting billions of shares at annual meetings. Questions are now being raised about the influence of the services and whether more formal oversight is needed. As a result, proxy advisory services may be about to start receiving their own report cards for a change.