Proxy advisers play a critical role in shaping corporate governance, but their practices often leave companies feeling undervalued and misunderstood. Our new report reveals that many companies are facing significant challenges due to the actions of these influential actors.
The lack of transparency and responsiveness from proxy advisers can and often do result in factual errors, limited engagement opportunities, and negative consequences for companies. These can lead to damaged relationships with investors, negative media coverage, and a depressed market sentiment.
To address these concerns, we call for greater transparency, improved communication, and a more nuanced approach to corporate governance from proxy advisers.
As the Financial Reporting Council continues its review of the UK Stewardship Code, this is an opportune time to reassess the role and responsibilities of proxy advisers.
