Ep50 “Is Proxy Advising a Catch-22?” with Chester Spatt

Ep50 “Is Proxy Advising a Catch-22?” with Chester Spatt

If the purpose of a proxy advisory firm is to gather information and advise shareholders on how to vote, then how do the firms handle the many different goals and incentives each shareholder brings to the table? Where do the proxy advisory firms’ interests truly lie?

In this episode, hosts and finance professors Jonathan Berk and Jules van Binsbergen speak with guest Chester Spatt, finance professor at Carnegie Mellon University and former Chief Economist at U.S. Securities and Exchange Commission, about the function and purpose of proxy advisory firms, such as Institutional Shareholder Services (ISS) and Glass Lewis.

The conversation delves into the differing objectives and incentives among shareholders and how that complicates the work of a proxy advisory firm. They also discuss how and why proxy advisory firms may purposely foster close votes, and what could serve as better voting benchmarks.

Find All Else Equal on the web:
https://lauder.wharton.upenn.edu/allelse/

All Else Equal: Making Better Decisions Podcast is a production of the UPenn Wharton Lauder Institute through University FM.


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Episoder(96)

Ep31 How Much Should You Save?

Ep31 How Much Should You Save?

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Ep30 “Becoming a Better Communicator” with Matt Abrahams

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Ep29 “How Do You Become CEO?” with Dirk Jenter

Ep29 “How Do You Become CEO?” with Dirk Jenter

A lot has been written and said about CEOs and their compensation, but who are they really and how did they get there? According to the data, what are the most likely paths to become one? In this epis...

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Ep28 Incentives and Externalities

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Humans respond to incentives, and so incentives predict behavior and sometimes the behavior can be detrimental. In this episode of All Else Equal: Making Better Decisions, hosts and finance professors...

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Ep27 "The Future of AI" with Michal Kosinski

Ep27 "The Future of AI" with Michal Kosinski

The speed at which AI is getting smarter is on everybody's mind these days. In this episode of All Else Equal: Making Better Decisions, hosts and finance professors Jonathan Berk and Jules van Binsber...

31 Mai 202330min

Ep26 “Investigating Implausible Theories: The Case of COVID” with Matt Ridley

Ep26 “Investigating Implausible Theories: The Case of COVID” with Matt Ridley

When COVID-19 shut down the world economy in 2020 many wondered where it had begun and why the pandemic had even started in the first place. In this episode of All Else Equal: Making Better Decisions,...

17 Mai 202329min

Ep25 “Bubble Trouble” with Will Goetzmann

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Financial bubbles are episodes where the value of something (like stocks, tulips or cryptocurrency) shoots up very rapidly, but then peaks and comes crashing down. The problem has never been seeing th...

3 Mai 202328min

Ep24 “When Institutions Cry Wolf” with Jay Bhattacharya

Ep24 “When Institutions Cry Wolf” with Jay Bhattacharya

It takes a long time to build up credibility, but you can lose it in an instant. What would it take to justify lying to the public for their own good, and are the benefits worth the costs? In this epi...

12 Apr 202332min

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