Corporate governance has become increasingly politicized in recent years, with very real consequences for investors and financial institutions of all kinds. From a looming funding crisis facing the nation’s public pension system to the emergence of quasi-regulators operating with unchecked powers and limited scrutiny, there has been increased focus on politically motivated investments, often at the expense of traditional fiduciary responsibility aimed at maximizing returns.
The role and influence of proxy advisory firms is under a microscope as regulators and business leaders question their growing power. In the world of proxy voting, the two largest advisory services for institutional shareholders control an estimated 97 percent of the market. ACCF research finds automatic voting and over reliance on their recommendations decreases the ability of companies to advocate for themselves or their businesses in the face of an adverse recommendation.
Realities of Robo-Voting » Inherent Conflicts » Flawed Voting »
