Support our nonpartisan, nonprofit research and insights which help leaders address societal challenges.Donate
May 2020 | Director Notes
In this Director Notes report, the authors describe research findings related to the influence of proxy advisors in US corporate governance. The authors find that boards feel, and sometimes yield to, pressure to conform to compensation practices recommended by proxy advisors despite their own preferred compensation philosophies, even in the absence of overt proxy advisor scrutiny or negative shareholder votes. They also find that proxy advisors are susceptible to conflicts of interest and generally use a one-size-fits-all approach to voting recommendations. Overall, however, such advisors are viewed as improving compensation practices by increasing transparency and accountability and fostering dialogue between firms and their shareholders.
May 13, 2020 | Executive Summary