The trouble with proxy advisors...and a solution

Detailed arguments in this defense of proxy agencies are very good, but simple solution is - ask what are the issues (pay, independence, related party transactions etc etc), they should be easy to answer, yes or not, no exceptions for specific circumstances or the get-out-clause of 'complain and explain' which only exist to make it extremely difficult to track thousands of companies - and the work has to be duplicated by all the investors. No wonder they love to outsource governance to proxy agencies. On top of that electronic voting on an easy-to-use platform would make it transparent, cheap and easy to vote on all the issues.


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