Proxy Advisory Firms
Chester highlights the limitations of small asset managers who often rely on proxy advisory firms, leading to potential misalignment in value maximization. He discusses the controversial HP and Compact merger, illustrating how ISS's recommendation contradicted market signals, ultimately resulting in a disastrous outcome for HP shareholders. The conversation emphasizes the importance of aligning objectives between large firms and their advisory services to ensure better decision-making.In this clip
From this podcast
All Else Equal: Making Better Decisions
Ep50 “Is Proxy Advising a Catch-22?” with Chester Spatt
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