Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

36801

Proxy voting advisers increasingly lean with management in board fights

RELATED TOPICS​

The two leading proxy advisers have become less likely to support dissident director candidates in US proxy fights over the past five years, according to data from Insightia.

So far this year (as of 15 August), Institutional Shareholder Services (ISS) and Glass Lewis have sided with management in 73 per cent and 64 per cent of contests, respectively. In 2016, when activism was already a well-established feature of corporate life, ISS backed management only 50 per cent of the time and Glass Lewis 46 per cent of the time.

When these advisers do endorse dissidents, they are becoming less willing to support entire slates. ISS backed all dissident candidates in one-third of 2016 proxy contests, and Glass Lewis one-fifth. For both advisers, this number is down to 9 per cent in 2021.
 
Insightia’s analysis was based on 98 US proxy contests out of 145 recorded since 2016, limited to meetings where data for both advisers was available. An analysis of 120 Glass Lewis recommendations over the same period confirms the trend. The figures for ISS are based on Insightia’s proprietary “synthetic” model, which uses investor voting to accurately derive ISS recommendations. Glass Lewis recommendations were provided by the adviser directly.

The change is thought to be the result not of advisers changing their approach, but perhaps to the smaller number of proxy fights going to a vote, proactive board refreshment by targeted companies, and larger activists increasingly settling early in a fight.

Latest News

Designed to meet the growing needs of investors seeking to combine financial returns with impact..
MSCI has launched MSCI AI Portfolio Insights, writing that it combines generative artificial intelligence “GenAI”..
The Capgemini Research Institute’s World Wealth Report 2024, published today, reveals the number of high-net-worth..

Related Articles

graph
The exodus from hedge funds continues with investors questioning unswayed by relatively strong performance from the alternative asset class...
The exodus from hedge funds continues with investors questioning unswayed by relatively strong performance from the alternative asset class...
Waves
A joint statement from BNP Paribas Asset Management, Federated Hermes Limited, Mirova, Robeco and Storebrand Asset Management has been published, entitled The urgent need for better ocean-related data to make informed investment decisions...
A joint statement from BNP Paribas Asset Management, Federated Hermes Limited, Mirova, Robeco and Storebrand Asset Management has been published,..
Frozen soap bubble
From the end of this month, the UK’s Sustainability Disclosure Requirements (SDR) regime comes into force which the Financial Conduct Authority says has a simple aim: “Financial products that are marketed as sustainable should do as they claim and have the evidence to back it up.”..
From the end of this month, the UK’s Sustainability Disclosure Requirements (SDR) regime comes into force which the Financial Conduct..
Global ESG Investing
On May 15 Florida’s Republican Governor Ron DeSantis signed legislation that furthers his ongoing campaign to oppose the role of climate change and ESG factors in state policymaking...
On May 15 Florida’s Republican Governor Ron DeSantis signed legislation that furthers his ongoing campaign to oppose the role of..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by