Letter Regarding the Hearing on ‘Exposing the Proxy Advisory Cartel: How ISS & Glass Lewis Influence Markets
The International Corporate Governance Network (ICGN) would like to offer its perspective to the Subcommittee on Capital Markets on the role and influence of proxy advisory firms, ahead of the hearing taking place on 29 April on this topic. We would appreciate it if you would add our letter to the official record. Led by […]
Jen Sisson is the Chief Executive Officer and Severine Neervoort is a Global Policy Director at International Corporate Governance Network (ICGN). This post is based on their ICGN memorandum.
The International Corporate Governance Network (ICGN) would like to offer its perspective to the Subcommittee on Capital Markets on the role and influence of proxy advisory firms, ahead of the hearing taking place on 29 April on this topic. We would appreciate it if you would add our letter to the official record.
Led by investors responsible for assets under management of >US$90 trillion, ICGN promotes high standards of corporate governance and investor stewardship globally. Our membership is based in more than 40 countries, and comprises asset owners, asset managers, and advisers.
We are concerned by the fact that many parties continue to either misunderstand, or wilfully misrepresent, the role proxy advice and proxy research providers play in the voting process. We are worried that a hearing entitled “Exposing the Proxy Advisory Cartel: How ISS & Glass Lewis Influence Markets” does not create a helpful environment for an unbiased, factual, and balanced conversation. In this context, we want to make sure that the Subcommittee can hear the perspective of institutional investors, who are the main users of proxy research.
