Empowering Shareholders Will Help Reduce Proxy Advisory Firm’s Undue Influence

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Titans of Wall Street have become vocal advocates for environmental, social, and governance (ESG) investing – including leaders of the world’s largest asset managers, banks, and other financial institutions.

Less well known proponents, but perhaps even more influential, are the proxy advisory firms ISS and Glass Lewis, who control 97 percent of the proxy advisory market. Proxy advisory firms advise institutional investors (like Vanguard, BlackRock, and State Street) and dozens of state retirement systems on how to vote on the thousands of shareholder resolutions which arise every year.

Despite all this enthusiasm, there are reasons for skepticism. As I have documented hereherehere, and here, ESG investing is far from the panacea its proponents claim.

Click to read the full article at Forbes.

Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.

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