Proxy firm

From Wikipedia, the free encyclopedia

A proxy firm is a company hired by corporate shareholders to cast votes on their behalf. The top two proxy firms are Glass, Lewis & Co. and Institutional Shareholder Services.[1] Some proxy firms play the role of proxy advisor, in which they simply advise their clients on how to vote.[2] A potential conflict of interest identified by the Government Accountability Office is that some owners of proxy firms do business with both issuers and investors.[3] In many cases, proxy firms have attempted to limit executive compensation.[4]

[edit] References

  1. ^ Harris, Roy (2007-05-30). Proxy Firms Fire Back at Critics. CFO.com.
  2. ^ Alistair Barr & Jonathan Burton (2007-06-11). Controversy ignites competition among proxy firms. Marketwatch.
  3. ^ The influence of proxy advisory firms on executive remuneration. Guerdon Associates (2007-1-10).
  4. ^ Zac Bissonnette (2008-01-15). Proxy firm questions Tyson chief's pay.