Perspectives on Proxy Advisors

The latest CGIC study among institutional investors and proxy voters has been released to CGIC members. This report focuses on perspectives of proxy advisory firms, such as ISS and Glass Lewis.

Overall, investors are happy with the job these rating agencies are doing, with only 17% citing a concern over their standardized, one-size-fits-all approach.

Proxy voters want three core mandates to govern proxy advisory firm analyses:

  • Protection of shareholder voting rights
  • Ensuring that executive compensation is appropriately linked to company performance
  • Close scrutiny of board structure and diversity

However, it isĀ important to keep these advisors’ recommendations in perspective. Ultimately, investors believe proxy advisors’ recommendations provide useful guidelines, but not mandatesĀ by which they must abide.

Regardless of commentary and recommendations from rating agencies, there is still no substitute for focused and meaningful engagement with your investors on your specific issues as they pertain to your board, management, strategy and performance.

The Executive Summary of this report will be released soon. Please contact David Bobker if you would like to review the summary report and discuss the full results.