Document Type
Article
Publication Title
Villanova Law Review
Publication Date
2010
ISSN
0042-6229
Page Number
1
Keywords
mutual funds, shareholders, proxy proposals, ISS voting
Disciplines
Business Organizations Law | Law
Abstract
This article analyzes mutual fund voting data from 2003-2008, the first five proxy seasons for which this data is available, and seeks to identify the extent to which mutual funds vote consistently with the voting recom- mendations of RiskMetrics' ISS Corporate Governance Services (ISS). We compare voting by mutual funds to voting by all shareholders during this time period and then focus on mutual fund voting on non-election and non-routine proxy proposals-both those submitted by management and by shareholders. The questions we examine are: (1) Over the past five voting seasons, have mutual funds (and shareholders generally) voted on proxy proposals more consistently with ISS voting recommendations, compared to management voting recommendations? and (2) Over this same period, does mutual fund voting deviate from ISS voting recommendations depending on whether the proposal is submitted by management or shareholders, or on the topic of the proposal, such as those relating to anti-takeover issues or salient corporate governance issues?
Recommended Citation
Randall S. Thomas, James Cotter, and Alan Palmiter,
ISS Recommendations and Mutual Fund Voting on Proxy Proposals, 55 Villanova Law Review. 1
(2010)
Available at: https://scholarship.law.vanderbilt.edu/faculty-publications/1476