Proxy Advisory Firms' Beefed-Up Role In Exec Pay

Law360, New York (August 23, 2010, 1:45 PM EDT) -- Managing a public company, whether as an executive officer or as a board of directors, is challenging, especially in this economic environment. All major business decisions receive heavy scrutiny in the capital markets and media, and the evaluation of a company’s financial performance and compensation practices by proxy advisory firms is, in many respects, even more intense.

Over the years, the power these firms hold in controlling the outcome of director election contests, executive compensation practices and other matters requiring stockholder consent has increased significantly....
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