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April 2, 2019

Majority of retail investors back new regs on corporate advisory firms: Study

A majority of retail investors Opens a New Window. want companies to pursue profit-maximizing strategies Opens a New Window. over social priorities, and believe the arcane corporate advisory firms that back those measures should be regulated more strongly by the federal government Opens a New Window. , according to a study published on Tuesday.

March 19, 2019

Companies Call for Oversight of Firms That Advise Shareholders

Companies want the firms that advise shareholders on proxy proposals to face government oversight of their activities, a wish securities regulators are expected to act on as early as this spring.

March 12, 2019

Proxy Advisory Firm Work Looms Large for SEC’s Roisman

Proxy advisory firms are likely to be a top priority for the Securities and Exchange Commission’s point man on revamping corporate America’s shareholder voting system. SEC Commissioner Elad Roisman’s background at the commission and in Congress suggests he may heed corporate calls to add oversight for the advisers, whose voting recommendations to institutional investors play an increasingly important role in the proxy process.

March 8, 2019

How to Enhance the Value of Shareholder Voting Recommendations

In a new article, I discuss how investment advisers like Blackrock, State Street, and Vanguard, can become adequately informed prior to voting their proxies without having to read massive amounts of information about the hundreds or thousands of companies they manage for their clients.

March 6, 2019

NAM Offers Policy Solutions for Proxy Advisory Firm Oversight

Today, the NAM submitted comments to the SEC outlining our proposed policy solutions to ensure that these unregulated firms do not continue to undermine the retirement security of millions of Americans.

February 27, 2019

How the SEC can Help Mitigate the ‘Proactive’ Agency Costs of Agency Capitalism

The understanding that proactive agency costs of agency capitalism exist is nothing new. For example, the SEC Release, Disclosure of Proxy Voting Policies and Proxy Voting Records by Registered Management Investment Companies, the companion release, recognized the agency costs generated when mutual fund advisers are reluctant to vote against a company’s management for fear of losing the company’s retirement business. Even though it was not labeled as such, this type of agency cost falls in the proactive category.

February 5, 2019

Trump admin pushed by US businesses to revamp investor communication

A large coalition of U.S. businesses on Monday renewed a push to convince the Trump administration Opens a New Window. to overhaul the process under which shareholders communicate with companies, changes that impact major asset firms and Main Street investors alike Opens a New Window. . The advocacy efforts from the U.S. Chamber of Commerce, National Association of Manufacturers and over 300 companies -- including the Walgreens Boot Alliance, Inc. and Dollar Tree – center on the often arcane proxy process. In a letter Opens a New Window. sent Monday to Securities and Exchange Commission Opens a New Window. Chairman Jay Clayton spearheaded by Nasdaq Inc., the signatories said the current system is “driving many companies out of the public markets.”