Proxy Advisory Firms: Information intermediaries or standard setters?

There is a growing concern among market participants that proxy advisory firms exert an outside influence on proxy voting outcomes. This potentially allows PAs to exert pressure on firms to adopt their preferred practices, which may not actually be in the best interests of shareholders. This research investigated how internal stakeholders view the role and influence of PAs via interviews with 43 PA representatives, board directors, HR executives and compensation consultants. The research found that PAs have a positive influence