We doubt it. We believe prudence demands funds be limited to investments which can be reasonably monitored. In addition, election procedures in many funds need to be changed to give a fair and active voice to plan beneficiaries. Incumbents should not be given unfair advantage. However, a continued downturn in the stockmarket is likely to bring a renewed interest in the accountability of institutional investors themselves.
Legitimacy requires they eat their own cooking.
Back to the top A merican Society of Corporate Secretaries met with Institutional Shareholder Services to discuss the process by which ISS researches proxy issues and advises its clients. Apparently, ASCS representatives expressed the fact that companies would like to see ISS' analysis before it goes out. ISS noted they review 8,000 domestic companies so that isn't practical. ISS also calls for companies to adopt governance standards requiring a substantial majority of independent directors who are in charge of evaluating top execs, ensuring CEO succession plans are in place. Only independents should serve on compensation, nominating and audit committees.