While most of the details have now been confirmed, there remains debate over a company’s ability to review and respond to proxy advisors’ reports, as well as the practice of “robo-voting”, where certain investors are automatically following proxy firms’ guidance without doing their own due diligence.
Last year, a report commissioned by the American Council for Capital Formation, a non-profit, found 139 purported “proxy adviser errors” across 94 different companies. But in a letter to the SEC last month, the CII said that when it delved into the ACCF report, it found that “most of the claimed errors were actually disagreements on analysis and methodologies.”
Wall Street Journal
Studies have found that the two firms can swing 20% of votes in proxy elections. An American Council for Capital Formation review last year found that 175 asset managers with $5 trillion of assets voted with ISS recommendations 95% of the time. Activist hedge-fund investors often enlist the proxy firms to shake up management, for better or worse.
Proxy advisory firms have come under increasing scrutiny in recent months for the disproportionate influence they have over shareholder votes at America’s public companies....
L.A. Daily News
a 2016 report by the American Council for Capital Formation found that “environmental-related investments comprised four of its nine worst performing private equity funds last year, accounting for more than $600 million in committed capital.” Focusing on ethereal matters makes it harder for CalPERS to dig out of its hole, something that’s essential even though taxpayers are the ultimate backers of all California public pensions.
A report commissioned by the American Council for Capital Formation, a think-tank, last year found that almost a fifth of votes at annual meetings were cast within three days of an adverse recommendation by a proxy adviser, suggesting that many asset managers automatically follow proxy advisory firms.
The Wall Street Journal
Corporate Climate Coups Averted Exxon and Chevron shareholders vote to stay in business. The New York State Common Retirement Fund and the Church of England endowment...
ACCF and Bipartisan Policy Center: As the role of businesses in society evolves, a government rethink is critical
On February 7, the ACCF joined Bipartisan Policy Center for a panel discussion explore how private sector leaders are responding to the growing role of corporate governance in public policy.
"It can start with disclosure, and then goes to, why haven't you reached X?" says Tim Doyle, vice president for policy with the American Council for Capital Formation. "It's the beginning of a slippery slope when a shareholder recommendation turns into things that shareholders can ask for in the future."
Pensions & Investments
Gary Retelny said ISS works ‘extremely hard’ to mitigate any potential conflicts of interest. Sally Montana Powerful institutions in Washington are taking a renewed look...
Activist Investing Today
The general counsel of the corporate-backed American Council for Capital Formation, spoke to the Activist Investing Today podcast about two new studies the group...
Numerous Asset Managers Voting in Lockstep with Proxy Advisor Recommendations
Proxy-advisory firms, under scrutiny in Washington over the weight given to their corporate-policy guidance, aren't giving companies enough time to respond to voting recommendations...
Investors are voting on expensive shareholder proposals designed to tackle global warming without understanding the negative effect such measures have on their investments, according...
Mr. Brent J. Fields Secretary U.S. Securities and Exchange Commission Re: File Number 4-725; SEC Staff Roundtable on the Proxy Process Dear Mr. Fields: The American Council for Capital...
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