There's a New Sheriff in Town: Institutional Shareholder Services

Posted: 3 Oct 2009

See all articles by David F. Larcker

David F. Larcker

Stanford University - Graduate School of Business

Brian Tayan

Stanford University - Graduate School of Business

Date Written: October 15, 2007

Abstract

In 2007, Institutional Shareholder Services (ISS) was the largest proxy advisory company in the world, with over 1,700 institutional clients managing an estimated $25 trillion in equity securities. The ISS proxy advisory services were intended to give shareholders greater influence over the management and oversight of the companies they invested in. Over time, ISS increasingly found itself in a central position as an authoritative voice in the debate over shareholder rights. The position was a lucrative one for the company. Critics, however, wondered whether ISS's positions on important issues were the correct positions and whether it was beneficial to have one organization hold such influence over closely contested proxy contests.

Keywords: Executive Compensation, Board of Directors, stock options, Corporate Governance, mergers & acquisitions

JEL Classification: G3

Suggested Citation

Larcker, David F. and Tayan, Brian, There's a New Sheriff in Town: Institutional Shareholder Services (October 15, 2007). Rock Center for Corporate Governance at Stanford University Teaching Case No. CG -07. Available at SSRN: https://ssrn.com/abstract=1482064

David F. Larcker (Contact Author)

Stanford University - Graduate School of Business ( email )

Graduate School of Business
518 Memorial Way
Stanford, CA 94305-5015
United States
650-725-6159 (Phone)

Brian Tayan

Stanford University - Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States

Register to save articles to
your library

Register

Paper statistics

Abstract Views
1,454
PlumX Metrics
!

Under construction: SSRN citations while be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information