The SEC’s recently issued guidance regarding investment advisor’s responsibilities in proxy voting and the role of proxy advisory firms disappointed some companies and legal professionals for failing to reign in proxy advisory firms.
Proxy advisory firms have been steadily gaining influence among institutional investors which threatens companies’ longstanding advantage (see my posts – Proxy Advisors’s Success Draws Attention, Silent Majority Speaks and Herding Cats).
The SEC’s guidance reiterated the current rules, not changing them.
The trend, raising proxy advisory firms’ influence in corporate proxy issues, therefore, is likely to continue.
Click on the links below for the SEC Guidance and an article in the online magazine “FierceCFO”.