A Partial Defence Of Proxy Advisors

When ICSA and the FT surveyed opinions for the latest Boardroom Bellwether survey published in May, companies were asked: how do you perceive the influence of proxy advisors on shareholder engagement?

Only 3% of respondents felt they had a positive impact. Can proxy advisers really be doing as bad a job as this survey suggests?

This industry has become important because many institutional investors these days invest in thousands of companies across many countries.
Each of these companies will hold an AGM at which resolutions are tabled on which shareholders are asked to vote. Factor in the fact that the majority of AGMs take place in a concentrated period, and it is obvious that investors cannot meaningfully assess each and every resolution on its merits before deciding how to vote.