A Lament on Corporate Governance

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2 Responses

  1. Nicholas Georgakopoulos says:

    Super! Can we now get over the corporate governance fad in corprate scholarship and teaching?

  2. Large institutional investors generally subscribe to proxy advisory services such as those provided by Institutional Shareholder Services (ISS) and Glass Lewis. These services provide analysis of issues and advice on how to vote at thousands of companies based on best practices.

    They do a relatively good job, considering they can only spend about $2000 in total analyzing each proxy. That low price is based on their subscription model. Since few investors subscribe to their services, they can’t really afford to do an in-depth analysis.

    Holding a contest for the best advice could bring in new proxy advisors specializing in specific industries or companies. In-depth analysts might comment not only on items on current proxies but might provide investors with key comparisons with competitors and could delve into issues on the horizon.

    My proxy contest proposal will be voted on at the upcoming annual meeting of Cisco Systems. Learn more at http://corpgov.net/2013/07/proxy-proposals-worth-considering-for-next-season/ Want corporate governance evaluations to be firm specific? Vote for the proxy advisor competition at Cisco.