Institutional investors that own between 70 and 80 percent of the market value of US public companies often rely on investment advisers voting on behalf of clients. The SEC and corporate executives are willing to curb the power of the two largest proxy advisory companies, ISS and Glass Lewis. In a new episode of their podcast Capitalisn’t, Kate Waldock and Luigi Zingales discuss the new proposed regulation with SEC commissioner Robert Jackson.
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SEC Chairman Jay Clayton claimed that the draft regulation on shareholders’ votes and proxy advisory firms received approval by hundreds of “Main Street” Americans. A Bloomberg investigation reveals that many of the letters that the SEC published on its website are fake. This reform could change American capitalism. We deserve more serious debate.
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A new SEC proposal regarding proxy advisors will make it harder for shareholders to vote against CEOs’ preferences. However, there is a 60-day period to comment and propose amendments to the new regulation. Please send your comments to the SEC and to ProMarket as well. We will publish the best of them on our website.
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SEC Commissioner Robert Jackson dissented from his SEC colleagues’ proposal on how to reform proxy advisors regulation. New rules, he argues, would introduce a tax on firms who recommend that shareholders vote in a way that executives don’t like. Jackson’s analysis also shows that the proposed changes will remove key CEO accountability measures from the ballot.
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In a new episode of their podcast Capitalisn’t, Kate Waldock and Luigi Zingales discuss one of the most hated industries of America: private equity. Democratic presidential candidate Elizabeth Warren has a plan to curb its abuses, but can it work?
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A recent Washington Post op-ed claimed that creating a digital authority to regulate Big Tech would be a disaster because of high costs and the risk of being captured by regulated companies. Fiona Scott Morton and Luigi Zingales defend the agency proposed by the Stigler Center’s report on digital platforms.
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In an excerpt from his new book “Super Pumped: The Battle for Uber,” New York Times reporter Mike Isaac reveals the details of Uber’s fight against Portland authorities to enter the local market. Isaac will present his book at a Stigler Center and Harry L. Davis Center event on November 18.
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Every year, Americans spend 9.78 billion hours filling out federal paperwork. These administrative burdens can make it difficult or impossible for people to vote or to speak freely.
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Why did Washington respond to the 2008 financial crisis by pushing even more wealth and power into the hands of the same people that caused it? The answer is partly rooted in the legacy of the angry young Democrats who entered Congress in the wake of the Watergate scandal and unwittingly loosened the chains of concentrated corporate power.
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In a letter submitted to the record by the US Senate Subcommittee on Antitrust currently investigating Big Tech, Luigi Zingales expounds on the Stigler Center’s policy recommendations on how to address the market power of the largest tech platforms.
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Much like in the first Gilded Age, antitrust enforcers today are hitting labor, not capital. This is thanks to Robert Bork’s radical and influential reinterpretation of antitrust law. In helping successfully rewrite antitrust, Bork left a legacy of corporate supremacy and individual powerlessness.
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The first minimum-wage laws in the history of the United States were predominantly gender-specific in that they were imposing a lower bound only on women’s earnings. In a new working paper, we identify the impact of these minimum-wage laws on the employment of American men and women.
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