There has been a lot of misinformation spread about proxy advisors and the services they provide to institutional investors. Proxy advisory firms play an important role in helping the tens of millions of individual Americans build a retirement nest egg — and mitigate risks while doing so. But attacks on the system, particularly those made by self-interested lobbyists with their own agendas, ignore the facts.
On behalf of individual “Main Street” investors, institutional advisors cast shareholder votes on impactful corporate governance matters such as CEO pay and the composition of corporate boards. The ability to fulfill this fundamental responsibility requires timely, independent research to help institutional advisors make informed decisions. As a result, in addition to their own research and due diligence, they also rely on the expertise of proxy advisory firms that provide unbiased research, in-depth analysis, data, and voting recommendations.
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