Fitzgerald Introduces Bill to Stop Proxy Advisors from Imposing ESG on U.S. Companies
WASHINGTON, DC – Congressman Scott Fitzgerald (WI-05) introduced the Stopping Proxy Advisor Racketeering Act, which restores transparency and accountability in corporate governance and protects shareholders from biased advice. Specifically, it prohibits proxy advisory firms from issuing voting recommendations when any conflict could reasonably be expected to affect the objectivity or reliability of proxy advice, including being a member of a group that supports proposals similar to the shareholder-sponsored proposal. A violation of this prohibition would result in civil penalties.
BACKGROUND: The U.S. proxy advisory market is dominated by a foreign-owned duopoly, which collectively and individually hold sufficient market power to shape the corporate governance of U.S. companies. Institutional Shareholder Services (ISS) and Glass Lewis have gained an unprecedented level of control–commanding 97% of the market. Despite their significant sway over trillions in shareholder assets, these firms operate with minimal transparency and are riddled with conflicts of interest.
Read the bill text here.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.
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