What they’re currently saying…
January 4, 2019Shrinking public markets limit the playing field for the average investors
Today's public markets, which were first designed to fill the capital-raising needs of the 19th century, are out of step with capital formation in the 21st century. It's essential to move the markets forward to provide adequate access to investment opportunity for all, and not just a few, investors. Right now, the average investor has little or no access to where the real action is.
December 12, 2018Proxy advisory firms are a silent threat to Main Street investors
Today, institutional investors — including the brokerages and money managers that maintain Americans’ retirement accounts — control nearly 80 percent of the stocks and equities traded on U.S. exchanges. With such large stakes in American businesses, they have a big say in corporate decision-making and governance when a vote is put before shareholders. They often turn to outside advisers, called proxy advisory firms, to guide those decisions.
November 13, 2018Your Investment Dollars May Be Used With Little Or No Oversight
Many financial institutions and asset managers are automatically voting in line with the recommendation of third-party proxy advisory firms who have no fiduciary responsibility, failing to evaluate the merits of the recommendations or the analysis underpinning them, in a process known as "robo-voting." The result is that hundreds of firms with trillions of dollars in assets under management – money from vehicles such as retirement savings, active investments, and 401k dollars – are voting their shares with a third party advisor that is not obliged to maximize the value of their holdings.
October 30, 2018Recent Data Analysis, Survey Results Demonstrate Validity of Common Proxy Advisor Concerns
Proxy advisor recommendations are a key tool for institutional investors, but there are institutions that automatically and without evaluation rely on proxy firms’ recommendations. This phenomenon, called “robo-voting,” has the potential to be a breach of fiduciary duty. Compounding the problem of robo-voting, companies often have little-to-no time to respond to erroneous recommendations, leaving little room to correct proxy advisor mistakes before votes are cast.
October 18, 2018Kill The Proxy Zombies
As highlighted in a recent report on zombie proposals by the U.S. Chamber’s Center for Capital Markets Competitiveness, these proposals often are not germane to the actual business activities of the corporation and are little more than political statements intended to garner a modicum of notice from the press. For instance, the Manhattan Institute estimates that 56% of all proxy proposals fall under this category.
September 17, 2018Cracking the Proxy Racket
Withdrawing the SEC’s 2004 guidance is the first step in subjecting the proxy giants to much-needed scrutiny. The House last year passed legislation requiring proxy firms to disclose their potential conflicts of interest and methodologies for formulating recommendations. The SEC could also impose a fiduciary obligation on proxy firms. Corporate boards answer to shareholders, and asset managers to clients. Why are the two most influential voices in corporate America immune from accountability or transparency?
August 27, 2018Reforming a broken system
The coalition believes it has common cause with the retail investor because it assumes that the overwhelming number of retail investors simply want to earn the highest risk-adjusted financial return possible. Correspondingly, it believes public pension fund beneficiaries want their trustees to participate in shareholder advocacy and voting for the same purpose.
August 14, 2018Daily 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 ...
June 28, 2018Proxy advisors do need to be regulated
H.R. 4015 will make a meaningful difference in addressing the conflicts of interest, lax oversight, and history of shoddy research underlying voting recommendations that are currently all too present in the proxy industry. Retail investors everywhere will be better off as a result.