020364_ProxyAdvice_Cover_159x205pxWe believe that voting standards and advice issued by proxy advisory firms need to be grounded in fact and reflect reality.  With the release of these principles, we hope to initiate a dialogue among companies, investors, and proxy advisory firms to create a system that brings transparency and accountability to proxy advisory firms and fosters strong corporate governance.

At the core of the principles are that proxy advisory firms and advice:

  • Are free of conflicts of interest that could influence vote recommendations;
  • Ensure that reports are factually correct and establish a fair and reasonable process for correcting errors;
  • Produce vote recommendations and policy standards that are supported by data driven procedures and methodologies that tie recommendations to shareholder value;
  • Allow for a robust dialogue between proxy advisory firms and stakeholders when developing policy standards and vote recommendations;
  • Provide vote recommendations to reflect the individual condition, status and structure for each company and not employ one-size-fits all voting advice; and
  • Provide for communication with public companies to prevent factual errors and better understand the facts surrounding the financial condition and governance of a company.

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