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https://www.wsj.com/articles/sec-to-take-action-aimed-at-proxy-advisers-for-shareholders-11566399808

SEC Takes Action Aimed at Proxy Advisers for Shareholders

Commission urges proxy advisers to take more steps to disclose how they craft their shareholder recommendations

Andrew Ackerman

The SEC’s moves target Institutional Shareholder Services and Glass Lewis, two firms which dominate the industry with 97% market share. Photo: Zach Gibson/Bloomberg News

WASHINGTON—Public companies notched a victory in a longstanding fight to curb the impact of consultants who influence shareholder votes on topics such as executive pay.

A divided Securities and Exchange Commission voted 3-2 Wednesday to urge the consulting firms—known as proxy advisers—to take more steps to disclose how they craft their shareholder recommendations, issuing a broad warning for proxy advisers that convey incorrect information.

SEC Takes Action Aimed at Proxy Advisers for Shareholders

Commission urges proxy advisers to take more steps to disclose how they craft their shareholder recommendations

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