Busy Season and Proxy Recommendations

52 Pages Posted: 5 Mar 2021

See all articles by Paul Calluzzo

Paul Calluzzo

Queen's University - Smith School of Business

Simi Kedia

Rutgers Business School

Date Written: January 27, 2021


The short period of time, from the fourth week of April to the end of May, referred to as the proxy season, has about 333 proposals voted a day relative to 27 proposals voted per day outside the proxy season. The compressed workload results in 17.6% fewer negative recommendations from ISS during this busy period. The proxy season also entails busy voting schedules for institutional investors who in the aggregate, respond by increasing their reliance on ISS recommendations. Aggregate support for proposals with a negative recommendation from ISS is 10% lower during the busy period. Stock price reaction to outcomes in close votes show that successful negative recommendations during the busy period, that is when negative proposals fail, are not value enhancing. In sum, ISS recommendations during busy voting periods are less likely to be negative, have greater influence on voting, and are not value enhancing. The results inform the policy debate on the role and influence of proxy advisors.

Keywords: Proxy Advisors, ISS, Proxy Season, Proxy Voting

Suggested Citation

Calluzzo, Paul and Kedia, Simi, Busy Season and Proxy Recommendations (January 27, 2021). Available at SSRN: https://ssrn.com/abstract=3773931 or http://dx.doi.org/10.2139/ssrn.3773931

Paul Calluzzo

Queen's University - Smith School of Business ( email )

Smith School of Business - Queen's University
143 Union Street
Kingston, Ontario K7L 3N6

Simi Kedia (Contact Author)

Rutgers Business School ( email )

117 Levin
94 Rockafellar Road
Piscataway, NJ
United States
8484454195 (Phone)

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