What They’re Saying

What they’re saying recently

November 2, 2018 | Bernard S. Sharfman

Comment Letter in Advance of SEC Staff Roundtable on the Proxy Process

Institutional investors have a fiduciary duty to vote. However, the use of uninformed and imprecise voting recommendations as provided by proxy advisors should not be their only option. They should always be in a position of making an informed vote, whether or not a proxy advisor can help in making them informed. This issue is what the above recommendations are meant to address. If implemented, then the resulting reduced reliance on the imprecise voting recommendations of proxy advisors should lead to the enhancement of shareholder voting by institutional investors.

August 27, 2018

Reforming 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 that public pension fund beneficiaries want their trustees to participate in shareholder advocacy and voting for the same purpose.

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 ...

June 28, 2018

Proxy 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.

June 18, 2018

Taking Steps to Level the Playing Field for Retail Investors

George David Banks on Bloomberg Markets: "It's important for people to know how important of a role the proxy advisory firms play. There are some studies that suggest that ISS can sway a vote 25 percent, either way. So this is actually a really big deal. We want to make sure that there is more transparency among these proxy advisory firms."

June 14, 2018 | Nan Bauroth

Shocking New Evidence Shows Activist Resolutions Add No Shareholder Value

Now, a groundbreaking study authored by a pair of leading economists helps rectify that critical gap in knowledge. Harvard Professor Joseph Kalt and Dr. Adel Turk have conducted the first research to examine the specific impact of climate change resolutions on shareholder value and found no support for the argument that additional disclosure required by these proposals provides meaningful information for the marketplace.

June 13, 2018

Environmental shareholder resolutions will never deliver the climate consensus that America needs

Last month the Main Street Investors Coalition launched our campaign to protect the interests of America’s retail investors. A first of its kind, the initiative aims to draw attention to the increasing politicization of the investment system and the damaging repercussions for America’s retail investors.

June 10, 2018

Standing Up for the Retail Investor

A new shareholder advocacy group has been formed, the Main Street Investors Coalition. The Coalition aims to mitigate the adverse effects created by the concentration of shareholder voting power that now resides in the hands of mutual fund advisors. This concentration has developed because of the growing popularity of index mutual funds and the industry practice of delegating shareholder voting rights to their advisors.

June 8, 2018

Wall Street’s Vanity For Social Causes Is Just The Latest Enron

Using ESG causes to chase publicity is a shameful abuse of someone else's money. A hedge-fund manager's effort to win plaudits at retirees' expense is just another example of arrogant Wall Street millionaires taking advantage of Main Street.