Here in the United States the two most important proxy firms are Institutional Shareholder Services, which is owned by hedge funds, and Glass Lewis, previously owned by a Shanghai Bank.
The recent purchase of Glass Lewis by the Ontario Teachers Pension Fund is a terrific development in the world of corporate governance because it will clearly lead to more transparency regarding key issues, especially mergers. Proxy firms are effectively corporate America’s Congress, both the House and Senate, given that these firms issues key opinions on mergers and other important governance issues. It is most surprising that the Securities and Exchange Commission, Federal Reserve and Congress in the US have not paid more attention to ISS and Glass Lewis and their impact on the financial markets.
