Category: Investment

Key findings of the interview-based research include:

1. Proxy firms’ role as data aggregators become increasingly important to asset managers
2. Proxy advisers’ influence extends well beyond the moment of voting, but mutual funds consider multiple factors
3. Asset managers have wide range of approaches to decision-making across the voting process
4.Three questions about level of internal deliberation on voting matters can help outside observers evaluate independence of asset managers' decisions

This edition of the Proxy Voting Fact Sheet contains a snapshot of the most relevant proxy season data for Russell 3000 companies that held annual general meetings (AGMs) between January 1 and April 30, 2012. The analysis includes:

The following entry appeared as part of GovernanceMetrics International’s GMI Blog. GMI is the leading independent provider of global corporate governance and ESG ratings and research. Corporate stakeholders – including leading investors, insurers, auditors, regulators and others – use GovernanceMetrics services to identify and monitor risks related to non-financial measures covering key environmental, social, governance and accounting risk factors.

The following entry appeared as part of GovernanceMetrics International’s GMI Blog. GMI is the leading independent provider of global corporate governance and ESG ratings and research. Corporate stakeholders – including leading investors, insurers, auditors, regulators and others – use GovernanceMetrics services to identify and monitor risks related to non-financial measures covering key environmental, social, governance and accounting risk factors.

(See at the bottom: However, the most important thing is that the companies and people concerned should recognize their own governance, responsibilities, their own positions and their own jobs. I would like to stress that I am concerned that there are serious problems in that respect.)

Theinsightful and articulateeconomist Richard Katz was in town last week, and gave presentations to a number of groups, including the American and French Chambers of Commerce in Japan. The theme of his presentation and views was particularly timely, as it focused on a cogent explanation of why Japan is Not the Next Greece.

The results of voting on the 10 shareholder proposals submitted to Mizuho Financial Group's AGM have been been disclosed. In asignificant turn of events, no less than seven of the 10 proposals submitted by shareholders were supported by at least 23% of shareholders. Within that group, the highest support ratio (28%) was for the proposal that would have required Mizuho FG to disclose its policy with respect to director training, and actions taken to execute that policy each year.

Abstract. This article reviews shareholder activism by hedge funds. We first describe the nature and characteristics of hedge fund activism, including the objectives, tactics, and choices of target companies. We then analyze possible value creation brought about by activist hedge funds, both for shareholders in the target companies and for investors in the hedge funds. […]

This is an excellent three-part series of videos of presentations made at the Stanford Rock Center on Corporate Governance, on the topic of shareholder activisn and how it has changed a lot in the last 15 years. The series provided a very up-to-date overview of proxy fights, PR wars and activist defense.

Skadden, Arps, Slate, Meagher & Flom LLP, publishedthe following client alert on June 21, 2012:

As we reach the peak of the 2012 proxy filing season, we are continuing to monitor the following developments:

What are the overall vote results?

Of the first 1,656 companies to report the results of say-on-pay proposals, approximately: