Tag Archive for ‘RiskMetrics’
Advisory shareowner votes on executive compensation were the big story of proxy season 2011, the inaugural year for “say on pay” at most U.S. public companies. In the first half of the year, shareholders voted against proposals at some 37 companies. The Council of Institutional Investors, a leading advocate for say on pay, offers its analysis of the “no” votes and what they might say about current executive compensation practices.
After days of intense political drama, House and Senate negotiators on the financial reform bill agreed to toss a key shareholder governance issue — proxy access — back to the Securities and Exchange Commission.
The new GRId, or Governance Risk Indicators, will score companies against best practices in four areas: board, compensation/remuneration, shareholder rights and audit.
Last week’s World Economic Forum in Davos, Switzerland, saw a major upgrade in the quantification of corporate sustainability with the unveiling of what the author calls the “second generation” of a list of the Global 100 Most Sustainable Corporations in the World.
For all of President Obama’s recent criticism of “fat cats” on Wall Street, his administration and the Congress have thus far proven unable to even begin addressing the issue in any fundamental way. New evidence of that can be found in the current The New York Times Magazine cover story, which focuses on the work of Kenneth Feinberg, the “pay czar” for companies receiving bailouts under the federal government’s TARP program.
Information on issues related to the environment, society and governance – what’s known in the investment community as “ESG”- is becoming an increasingly important commodity as institutional investors seek data to drive their portfolio decision-making. The most recent news in that regard is Thomson Reuters’ acquisition of Swiss environmental, social responsibility and governance data provider ASSET4.