Proxy firm
A proxy firm (sometimes known as a proxy advisor) is a firm hired by shareholders of public companies (usually large institutions) to recommend and sometimes caste proxy statement votes on their behalf. The top two proxy firms are Glass, Lewis & Co. and Institutional Shareholder Services (most currently a subsidiary of MSCI after that firms acquisition of Riskmetrics).[1] Additional proxy advisory firms include Egan-Jones Proxy Services, Marco Consulting Group and C&W Investment Group.[2] Recently, as of first quarter 2012, a new firm going by the name ProxyTell, LLC appears to have entered this market.[3]
By some accounts, ISS advised half of the common stock in the world as of 2010.[4] Some proxy firms play the role of proxy advisor, in which they simply advise their clients on how to vote.[5] A potential conflict of interest identified by the Government Accountability Office is that some owners of proxy firms do business with both issuers and investors.[6] In many cases, proxy firms have attempted to limit executive compensation.[7]
[edit] References
- ^ Harris, Roy (2007-05-30). "Proxy Firms Fire Back at Critics". CFO.com. http://www.cfo.com/article.cfm/9253594?f=related.
- ^ "Proxy Advisory Services". Shareholder Communications Coalition. 2009. http://www.shareholdercoalition.com/proxyadvisory.html.
- ^ "ProxyTell Press Release". ProxyTell, LLC. 2012. http://www.proxytell.com/node/20322.
- ^ Hyatt J. (2010). Proxy Advisors Find Themselves in the Spotlight. Business Ethics.
- ^ Alistair Barr & Jonathan Burton (2007-06-11). "Controversy ignites competition among proxy firms". Marketwatch. http://www.marketwatch.com/news/story/controversy-ignites-competition-among-proxy/story.aspx?guid=BD711286-71DE-4D3B-939F-9C6B9F1BC100.
- ^ "The influence of proxy advisory firms on executive remuneration". Guerdon Associates. 2007-01-10. http://www.guerdonassociates.com/News-Detail.asp?cid=&navID=&NewsID=198.
- ^ Zac Bissonnette (2008-01-15). "Proxy firm questions Tyson chief's pay". http://www.bloggingstocks.com/2008/01/15/proxy-firm-questions-tyson-chiefs-pay/.
