Corporate Governance

The Securities and Exchange Commission (SEC) should be commended for its decision last week to rescind two previously issued guidance letters that had allowed third-party firms known as “proxy advisors” to wield undue influence over the shareholder proposal process.

A Wall Street Journal editorial examines recent SEC guidance efforts in the role of proxy advisors. BlackRock Vice Chairman Barbara Novice responds in a letter to the editor.

The withdrawal of the SEC letters could help the bill’s supporters achieve their goals without Congress. “It’s a great first step toward genuine reform of the way these proxy advisory firms have exerted their influence over corporate governance matters,” said Tim Doyle, vice president and general counsel of American Council for Capital Formation, which supports the bill.

Corporate performance on environmental, social, and governance (ESG) issues have become increasingly significant in how investors evaluate a company. Investors and money managers rely...

Agencies that judge companies according to their environmental, social and governance metrics suffer from wildly diverging standards and “inherent biases”, according to a report by the American Council for Capital Formation.

The American Council for Capital Formation is questioning the ratings process used for ESG investments.

ACCF Executive Vice President George David Banks recently sat down with @markets to discuss proxy advisory firms and the disconnect between big money managers...

Former White House senior official George David Banks to serve as Executive Director

In the world of corporate governance, proxy advisory firms like ISS (Institutional Shareholder Services) and Glass Lewis have become increasingly important. Their role advising...

While the market from ESG related information and investment strategies has grown in the last few years, investing via these factors, without a show of “substantial increase in economic value of the company,” should be a decision that investors make after careful consideration of the effect on their investment.

Published in Investors' Business Daily

The recent push by New York City Mayor Bill de Blasio and Comptroller Scott Stringer to divest the city's pensions from fossil fuels is playing politics with retiree savings at a time when they can least afford it.