Proxy advisor

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Unregulated, unaccountable, and out of control.

A foreign-owned duopoly, ISS and Glass Lewis, is making decisions that affect the retirement savings of millions of hardworking Americans. Nobody regulates them, most Americans have never heard of them, and they have no responsibility to protect investors’ best interests.
America's largest publicly traded companies rely on shareholder voting to set the direction for their business, which, in turn, charts the course of the U.S. economy. Many shareholders defer to proxy advisory firms to make sense of the proposals at stake and decide how to vote, but their recommendations frequently ignore what matters most: Ensuring a return for everyone that’s invested.
A foreign-owned Duopoly
A foreign-owned Duopoly
Just two foreign-owned firms control 97% of the proxy advisory market in the U.S.
Unregulated and unaccountable
Unregulated and unaccountable
Despite their outsized influence on U.S. public companies, capital markets, and the financial wellbeing of millions of Americans, proxy advisory firms are unregulated and unaccountable, operating in the shadows with virtually no oversight.
time for reform
time for reform
Congress and the SEC have a chance to finally create transparency and bring real accountability to proxy advisory firms—and now is the time to act.

Too Much Power
Too Little Accountability

Proxy advisory firms are third-party organizations that claim to help institutional investors—ranging from pension funds to asset managers—cast their votes at shareholder meetings.

These firms have enormous power—shaping shareholder proposals, corporate governance, and board elections—that impact American businesses, customers, and investors.

In theory, the purpose of proxy advisory firms is to provide practical, data-driven guidance on company matters.

In reality, the proxy advisory market is dominated by two unregulated foreign-owned firms that own 97% of the market, promoting one-size-fits-all mandates based on thin financial analysis.

It's a broken model: Unaccountable proxy advisory firms drive decisions at businesses throughout the U.S. with little regard for company performance, long-term economic growth, and the financial security of American workers and retirees.

Why PolicyMakersNEED TO ACT NOW
The stakes are high

The issue has only become more consequential in recent years. Institutional investors now control more than 70% of the U.S. stock market, giving proxy advisors disproportionate power over corporate decisions that both affect your nest egg and shape the American economy.

Reform is Within Reach

Congress and the administration are aware of the problem, with bipartisan agreement that a foreign-owned duopoly shouldn't have so much power over the U.S. economy and everyday Americans’ financial security.

The time is now

Washington can bring oversight, accountability, and market competition to the proxy advisory industry. It's time to act.

It’s time to rein in and reform

For years, Congress and the SEC have tried to rein in proxy advisory firms, but lasting reform has remained elusive. Businesses are looking for certainty. Investors deserve accountability. Everyday Americans should have confidence in the safety of their retirement savings.

Washington agrees on the problem and has the power to do something about it—and that’s a good thing.

It’s time to hold proxy advisors accountable.

news and Resources

Why it matters, what’s at stake, and how accountability could finally be within reach.

American Banker
Congress must act to bring real accountability to proxy advisory firms
Forbes
Congress Is Shining A Light On Proxy Advisory Firms
Business Roundtable
Business Roundtable Calls for Bold Reform of the Corporate Proxy Process in New White Paper
Corporate Board Member
Time To Finish The Job On Proxy Advisory Oversight
Wall Street Journal
Cracking the Proxy Advisory Duopoly
Manhattan Institute
Proxy Advisory Firms: Empirical Evidence and the Case for Reform