Recent Blog Posts

August 21, 2018

How We Got Here: A Look at the Upcoming SEC Roundtable on Proxy Process

Since we launched, the Main Street Investors Coalition has sounded the alarm on the conflicted role and undue influence of proxy advisory firms. At the end of July, Securities and Exchange Commission (SEC) Chairman Jay Clayton announced that he will hold a roundtable on the proxy process, indicating that the SEC also recognizes the importance ...

August 16, 2018

WSJ: Proxy Advisors Play “Outsize Role” in Dictating Company Behavior

This week, Rite Aid and Albertsons decided not to go ahead with a  proposed merger due to opposition from proxy advisory firms. While arguments could certainly be made for and against this merger, this decision by these two companies makes clear the “outsize role that two advisory firms increasingly play in dictating shareholder interests,” according to the latest from The Wall Street Journal’s editorial board.

August 14, 2018

Daily Caller: “The Disenfranchisement of America’s Retail Investors is a Real and Alarming Trend”

In a recent issue of the Daily Caller, Main Street Investors Coalition advisory council member Nan Bauroth explains the goals of the coalition, why she’s a member of the advisory council, how institutional investors are distorting the shareholder resolution process, and how the Main Street Investors Coalition advocates for ways that everyday investors can exercise their ...

August 3, 2018

Institutional Investors Have Clear Ideological Biases

Most shares of publicly traded firms are managed by institutional investors, and it is those asset managers that cast the votes on shareholder proposals, not the retail investors who ultimately own the stocks. A recent paper from Columbia Business School and the European Corporate Governance Institute (EGCI), reveals that these institutional investors have clear ideologies ...

August 1, 2018

Are Proxy Improvements on the Way for Main Street Investors?

On Monday, the Securities and Exchange Commission (SEC) Chairman Jay Clayton announced his intention to hold a roundtable on the proxy process: “Shareholder engagement is a hallmark of our public capital markets, and the proxy process is a fundamental component of that engagement. In 2010, the Commission issued a concept release seeking public comment on ...

July 26, 2018

New York Times Hit Piece Reinforces Need for Main Street Investor’s Coalition

What do the vast majority of individual investors hope for when tucking away a portion of their paychecks every month into their pension funds or 401(k)? To have those investments perform well enough that they can live comfortably later in life – that their investment is maximized. This is a key agenda item for the the Main Street Investors Coalition (MSIC), which seeks to draw attention to institutional investor’s increasing focus on politically motivated investing, instead of working to maximize profits.

July 19, 2018

UK Regulator Puts Proxy Advisor Methodologies Under the Spotlight

On July 16, the UK Financial Reporting Council (FRC) published a revised Corporate Governance Code (the Code), explicitly referring to the role of proxy advisors – and a ‘box ticking’ approach to corporate governance and reporting. The Code sets standards of good practice for corporate governance, for all premium listed UK companies. In revising the Code, ...

July 9, 2018

“Shareholder Rights Group” Instead Represents Activist Investment Firms

A group of investors known as the “Shareholder Rights Group” who are largely focused on forcing companies to disclose information and change policies regarding their environmental impact made news last week when they criticized moves by the Securities and Exchange Commission (SEC) to prevent shareholders from “micromanaging” the companies they own.

July 4, 2018

Fair Representation for American Investors

Independence Day has become synonymous with fireworks, barbecues and other summer traditions. Now that everyone has returned to work following the big summer holiday, it may be worth taking a moment to reflect on what the day actually represents and the reason we commemorate July 4th each year – the adoption of the Declaration of ...