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Whatever Happened To The Prudent Man? The Case For Limiting The Influence Of Proxy Advisors Through Fiduciary Duty Law, Jodi Slaght
Jodi Slaght
Proxy advisors are third-party consultants that charge investment advisers for advice about specific companies, and provide “for” or “against” recommendations on shareholder voting issues. Currently, proxy advisors are not regulated by the SEC or any other government agency. At least one commentator has noted that the influence of proxy advisors is so substantial that it “cannot be overstated.” Additionally, proxy advisors are not required to disclose the methodologies used to render their recommendations.
The influence and lack of accountability of proxy advisors has become a cause for concern. In response, the SEC issued a concept release in 2010 addressing possible …