Proxy Firms Don’t Have to Disclose Conflicts. That Should Change
The firms whose advice can move those votes bear no comparable duty for the advice itself. States can close that gap by applying an enduring standard from the Supreme Court.
For 39 years, the Department of Justice told proxy advisory firm Institutional Shareholder Services it had no antitrust problem. Earlier this month, the Department of Justice took back that statement.
ISS has considerable market power. It and one other firm — Glass Lewis — control more than 90% of the proxy advisory industry, which guides investment managers on how to vote on CEO compensation, board elections, and other proposals that shape public companies. But efforts to regulate the market have yet to produce lasting effects.
As lawmakers from the Lone Star State and elsewhere consider their next move, they should take note of the opposition that the first round of reforms has met in the courts. Rather than targeting the advisers’ opinions, which prompted judges to hit the brakes on those reforms over free-speech concerns, they should focus instead on the advisers’ omissions. The US Supreme Court supplied the framework for doing so 50 years ago.
Politics
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Is American Nationalism Still Creed-able?
We are not there now, but there is reason to worry that the United States is in danger, if we are not careful, of ceasing to be a nation with the principles of 1776 at its core.
National Civitas Institute Poll: Americans are Anxious and Frustrated, Creating a Challenging Environment for Leaders
The poll reveals a deeply pessimistic American electorate, with a majority convinced the nation is on the wrong track.
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California is an American Nightmare – and the Future of the US Left
The once-Golden State is home to the two leading contenders for the 2028 Democratic nomination. It’s also a basketcase
How Occupational Licensing Hurts the Poor and Holds Back Growth in America and Around the World
Occupational licensing hurts the poor and holds back growth in America and around the world.
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