Concerns are mounting over the influence of proxy advisory firms ISS and Glass Lewis on shareholder votes, as they control a significant portion of the voting power for publicly-traded shares through passive index funds. Critics argue that these firms, which do not hold ownership stakes themselves, often make voting recommendations based on political considerations rather than shareholder interests.
This issue has been highlighted in the case of Tesla, where ISS and Glass Lewis have recommended against the re-election of directors Ira Ehrenpreis and Kathleen Wilson-Thompson, citing reasons such as insufficient gender diversity. The situation underscores broader concerns about the impact of proxy advisory firms on corporate governance and decision-making across various companies.
Concerns Raised Over Influence of Proxy Advisory Firms on Shareholder Votes
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