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A proxy firm
is a company hired by corporate shareholders to cast proxy statement
A proxy statement is a statement required of a United States firm when soliciting shareholder votes. This statement is filed in advance of the annual meeting. The firm needs to file a proxy statement, otherwise known as a Form DEF 14A , with the U.S. Securities and Exchange Commission...
votes on their behalf. The top two proxy firms are Glass, Lewis & Co.
Glass, Lewis & Co. is one of three prominent independent proxy advisory services in the United States, the other two being Proxy Governance, Inc. and RiskMetrics/Institutional Shareholder Services....
and RiskMetrics/Institutional Shareholder Services. By some accounts, RiskMetrics ISS advised half of the common stock in the world as of 2010. Some proxy firms play the role of proxy advisor, in which they simply advise their clients on how to vote. A potential conflict of interest identified by the Government Accountability Office
The Government Accountability Office is the audit, evaluation, and investigative arm of the United States Congress. It is located in the legislative branch of the United States government.-History:...
is that some owners of proxy firms do business with both issuers and investors. In many cases, proxy firms have attempted to limit executive compensation.