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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Rerun: Ep55 “The Future Of The MBA: From 3 Top Business Schools” with Madhav Rajan

Rerun: Ep55 “The Future Of The MBA: From 3 Top Business Schools” with Madhav Rajan

For the summer season, All Else Equal will be alternating between new episodes and reruns. In this week’s episode, we’re revisiting our conversation with Madhav Rajan of the University of Chicago Boot...

2 Juli 202532min

Rerun: Ep54 “The Rise And Fall of Great Societies: Lessons from History” with Victor Davis Hanson

Rerun: Ep54 “The Rise And Fall of Great Societies: Lessons from History” with Victor Davis Hanson

For the summer season, All Else Equal will be alternating between new episodes and reruns. On this week’s episode, we’re revisiting our conversation with historian Victor Davis Hanson.History shows th...

18 Juni 202530min

Rerun: Ep47 “Is the US National Debt Sustainable?” with Mohamed El-Erian

Rerun: Ep47 “Is the US National Debt Sustainable?” with Mohamed El-Erian

For the summer season, All Else Equal will be alternating between new episodes and reruns. On this week’s episode, we’re revisiting our conversation with Mohamed El-Erian on the intricacies of nationa...

4 Juni 202536min

Ep62 “The Cost of Social Compliance: Exploring Preference Falsification" with Timur Kuran

Ep62 “The Cost of Social Compliance: Exploring Preference Falsification" with Timur Kuran

Is the emperor wearing clothes?  Hosts and finance professors Jonathan Berk and Jules van Binsbergen are joined by economist and political scientist Timur Kuran who wrote the book, Private Truths, Pub...

22 Maj 202533min

Ep61 “Pursuit for Academic Freedom” with Richard Saller

Ep61 “Pursuit for Academic Freedom” with Richard Saller

If universities believe they should be free from government interference and that students and faculty have the right to freely express whatever viewpoints they hold, then the universities should be h...

7 Maj 202530min

Ep60 “A Trade Deficit? More Like a Capital Surplus” with John Cochrane

Ep60 “A Trade Deficit? More Like a Capital Surplus” with John Cochrane

What exactly is a trade deficit? And why are so many policymakers fixated on it? Lately, the trade deficit in the U.S. is taking the bulk of the blame for the economic situation we’re in and it’s one ...

23 Apr 202528min

Ep59 “Why Tariffs Are Not The Ultimate Trade Weapon” with Dani Rodrik

Ep59 “Why Tariffs Are Not The Ultimate Trade Weapon” with Dani Rodrik

With President Trump’s tariffs on Canada, Mexico, China, and other countries now in full swing, what consequences from an economic standpoint could the U.S. be facing? And what was the path that led u...

9 Apr 202532min

Ep58 How Rich Are The Ivy League Universities, Really? University Endowments Explained

Ep58 How Rich Are The Ivy League Universities, Really? University Endowments Explained

The recent crackdown on federal spending has universities sweating despite the fact that many of them boast huge billion-dollar endowments. So what gives? Why would less money from the federal governm...

26 Mars 202524min

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