House Committee Looks at Proxy Advisory Firms

The House Committee on Financial Services will hold a hearing tomorrow June 5 on “Examining the Market Power and Impact of Proxy Advisory Firms.”  According to the Committee's memorandum,

This hearing will examine the growing importance of proxy advisory firms in proxy solicitations and corporate governance, including the effect that proxy advisory firms have on corporate governance standards for public companies, the voting policies that proxy advisory firms have adopted, the market power of proxy advisory firms in an industry effectively controlled by two firms, and potential conflicts of interest that may arise when proxy advisory firms provide voting recommendations. This hearing will also examine proposals offered by the Securities and Exchange Commission (SEC) that seek to modernize corporate governance practices in order to improve the communications between public companies and their shareholders.

The Witness List includes

•The Honorable Harvey L. Pitt, Chief Executive Officer, Kalorama Partners, on behalf of the U.S. Chamber of Commerce
•Mr. Timothy J. Bartl, President, Center on Executive Compensation
•Mr. Niels Holch, Executive Director, Shareholder Communications Coalition
•Mr. Michael P. McCauley, Senior Officer, Investment Programs and Governance, Florida State Board of Administration
•Mr., Jeffrey D. Morgan, President and Chief Executive Officer, National Investor Relations Institute
•Ms. Darla Stuckey, Senior Vice President, Society of Corporate Secretaries & Governance Professionals
•Mr. Lynn E. Turner