{"id":44077,"date":"2024-03-22T07:25:54","date_gmt":"2024-03-22T11:25:54","guid":{"rendered":"https:\/\/allianceadvisors.com\/?p=44077"},"modified":"2025-03-17T16:19:57","modified_gmt":"2025-03-17T20:19:57","slug":"negative-recommendations-article","status":"publish","type":"post","link":"https:\/\/allianceadvisors.com\/ko\/negative-recommendations-article\/","title":{"rendered":"How to Manage Negative proxy advisory firm recommendations"},"content":{"rendered":"<div class=\"wpb-content-wrapper\">[vc_row][vc_column]<figure class=\"vcex-image vcex-module\"><div class=\"vcex-image-inner wpex-relative wpex-inline-block\"><img width=\"1900\" height=\"606\" src=\"https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/AdobeStock_69962958-paid.jpg\" class=\"vcex-image-img wpex-align-middle skip-lazy\" alt=\"black and white photo of people working\" data-no-lazy=\"1\" srcset=\"https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/AdobeStock_69962958-paid.jpg 1900w, https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/AdobeStock_69962958-paid-300x96.jpg 300w, https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/AdobeStock_69962958-paid-1024x327.jpg 1024w, https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/AdobeStock_69962958-paid-768x245.jpg 768w, https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/AdobeStock_69962958-paid-1536x490.jpg 1536w, https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/AdobeStock_69962958-paid.jpg?w=380 380w, https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/AdobeStock_69962958-paid.jpg?w=1140 1140w, https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/AdobeStock_69962958-paid.jpg?w=450 450w\" sizes=\"(max-width: 980px) 100vw, 980px\"\/><\/div><\/figure>[\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&rdquo;&rdquo;]Winning favorable vote recommendations from the <a href=\"\/?page_id=39520\">proxy advisors<\/a>, ISS and Glass Lewis, certainly make a company&rsquo;s annual shareholder meeting easier. However, when faced with an adverse vote recommendation, issuers should know there are still options on the table. The window for action is tight though, so preparing in advance is critical. Issuers can begin thinking through the following steps, so they can quickly move into action should there be opposition to any ballot items.[\/vc_column_text][\/vc_column][\/vc_row][vc_row css=&rdquo;.vc_custom_1711104194138{padding-top: 30px !important;padding-right: 30px !important;padding-bottom: 30px !important;padding-left: 30px !important;background-color: #f1f1f1 !important;}&rdquo;][vc_column]<style>.vcex-grid-container.vcex_69d6a703643f1{gap:40px;}<\/style><div class=\"vcex-grid-container vcex-module wpex-grid wpex-gap-20 wpex-grid-cols-1 wpex-lg-grid-cols-1 vcex_69d6a703643f1\"><style>.vcex-icon-box.vcex_69d6a70365aa6{background-color:#ffffff;}.vcex-icon-box.vcex_69d6a70365aa6 .vcex-icon-box-heading{font-size:1.23em;font-weight:600;}.vcex-icon-box.vcex_69d6a70365aa6 .vcex-icon-box-icon{color:#ffffff;background-color:#e1251b;height:50px;}.vcex-icon-box.vcex_69d6a70365aa6 .vcex-icon-box-symbol{width:50px;}<\/style><div class=\"vcex-module vcex-icon-box vcex-icon-box-one wpex-flex wpex-shadow-xl wpex-py-40 wpex-px-40 wpex-text-left vcex_69d6a70365aa6\"><div class=\"vcex-icon-box-symbol vcex-icon-box-symbol--icon wpex-flex-shrink-0 wpex-mr-20\"><div class=\"vcex-icon-box-icon wpex-items-center wpex-justify-center wpex-child-inherit-color wpex-text-center wpex-leading-none wpex-flex wpex-w-100 wpex-text-1 wpex-border-solid wpex-border-0 wpex-font-light\">1<\/div><\/div><div class=\"vcex-icon-box-text wpex-flex-grow\"><h3 class=\"vcex-icon-box-heading wpex-heading wpex-mb-10\">Know your shareholder base<\/h3><div class=\"vcex-icon-box-content wpex-last-mb-0 wpex-clr\"><p>The first step is understanding your company&rsquo;s ownership structure as of the <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Record Date&lt;\/div&gt;&lt;div class=glossaryItemBody&gt; The date established by a company&amp;#039;s board of directors as the cutoff point for determining...&lt;\/div&gt;&lt;div id=&amp;quot;cmtt_related_articles&amp;quot; class=&amp;quot;cmtt_related_articles_wrapper&amp;quot;&gt;&lt;div class=&amp;quot;cmtt_related_title cmtt_related_articles_title&amp;quot;&gt;Related Articles: &lt;\/div&gt;&lt;ul class=&amp;quot;cmtt_related&amp;quot;&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/ko\/annual-equity-plan-replenishments\/&amp;quot;&gt;Navigating Annual Consecutive Equity Plan Replenishments: Data Insights and a Handy Checklist for Companies&lt;\/a&gt;&lt;\/li&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/ko\/negative-recommendations-article\/&amp;quot;&gt;How to Manage Negative proxy advisory firm recommendations&lt;\/a&gt;&lt;\/li&gt;&lt;\/ul&gt;&lt;\/div&gt;&lt;div class=glossaryTooltipMoreLinkWrapper&gt;&lt;a class=glossaryTooltipMoreLink href=https:\/\/allianceadvisors.com\/ko\/glossary-index\/record-date\/ &gt;Read more...&lt;\/a&gt;&lt;\/div&gt;\"  data-link=\"https:\/\/allianceadvisors.com\/ko\/glossary-index\/record-date\/\"  href=\"https:\/\/allianceadvisors.com\/ko\/glossary-index\/record-date\/\"  data-mobile-support=\"0\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex='0' role='link'>record date<\/a>. This is crucial because knowing whether your company&rsquo;s ownership is heavily institutional or retail may determine what strategies to implement in your engagement efforts.<\/p>\n<p><a href=\"https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/331_CHART-1.jpg?w=2560\"><img decoding=\"async\" loading=\"lazy\" class=\"alignright wp-image-44102 size-medium\" src=\"https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/331_CHART-1-260x300.jpg\" alt=\"\" width=\"260\" height=\"300\" srcset=\"https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/331_CHART-1-260x300.jpg 260w, https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/331_CHART-1.jpg 711w, https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/331_CHART-1.jpg?w=142 142w, https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/331_CHART-1.jpg?w=426 426w, https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/331_CHART-1.jpg?w=568 568w\" sizes=\"auto, (max-width: 260px) 100vw, 260px\"\/><\/a>For example, if your company has a large retail base, an analysis can tell you if you have enough retail votes to offset the against voting from institutions. A good rule of thumb is a 3 to 1 ratio, if you need to offset 10% in negative votes you need to have at least 30% represented by Retail. Retail votes generally come in for management at a better than 9 to 1 ratio.<\/p>\n<\/div><\/div><\/div><style>.vcex-icon-box.vcex_69d6a70366e6c{background-color:#ffffff;}.vcex-icon-box.vcex_69d6a70366e6c .vcex-icon-box-heading{font-size:1.23em;font-weight:600;}.vcex-icon-box.vcex_69d6a70366e6c .vcex-icon-box-icon{color:#ffffff;background-color:#393939;height:50px;}.vcex-icon-box.vcex_69d6a70366e6c .vcex-icon-box-symbol{width:50px;}<\/style><div class=\"vcex-module vcex-icon-box vcex-icon-box-one wpex-flex wpex-shadow-xl wpex-py-40 wpex-px-40 wpex-text-left vcex_69d6a70366e6c\"><div class=\"vcex-icon-box-symbol vcex-icon-box-symbol--icon wpex-flex-shrink-0 wpex-mr-20\"><div class=\"vcex-icon-box-icon wpex-items-center wpex-justify-center wpex-child-inherit-color wpex-text-center wpex-leading-none wpex-flex wpex-w-100 wpex-text-1 wpex-border-solid wpex-border-0 wpex-font-light\">2<\/div><\/div><div class=\"vcex-icon-box-text wpex-flex-grow\"><h3 class=\"vcex-icon-box-heading wpex-heading wpex-mb-10\">Determine the level of influence the independent advisory firms have on your institutional shareholder base.<\/h3><div class=\"vcex-icon-box-content wpex-last-mb-0 wpex-clr\"><p>Knowing which institutional investors are influenced by ISS, Glass Lewis, or their own <a href=\"https:\/\/allianceadvisors.com\/ko\/proxy-logistics\/\">internal proxy voting guidelines<\/a> will assist in understanding the level of impact the adverse recommendation may have on the overall voting and help identify who you need to solicit support from.<\/p>\n<p><strong>Percentages based on Top Institutional Investors detailed below<\/strong><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-44108\" src=\"https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/331_CHART-2-e1711105622410-300x186.jpg\" alt=\"\" width=\"650\" height=\"403\" srcset=\"https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/331_CHART-2-e1711105622410-300x186.jpg 300w, https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/331_CHART-2-e1711105622410-1024x635.jpg 1024w, https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/331_CHART-2-e1711105622410-768x476.jpg 768w, https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/331_CHART-2-e1711105622410.jpg 1200w, https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/331_CHART-2-e1711105622410.jpg?w=240 240w, https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/331_CHART-2-e1711105622410.jpg?w=480 480w, https:\/\/e4h8grreyn6.exactdn.com\/wp-content\/uploads\/2024\/03\/331_CHART-2-e1711105622410.jpg?w=960 960w\" sizes=\"auto, (max-width: 650px) 100vw, 650px\"\/><\/p>\n<p>While several well-known large institutional investors maintain their own <a class=\"glossaryLink cmtt_Shareholder Vote Projection\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Voting Guidelines&lt;\/div&gt;&lt;div class=glossaryItemBody&gt; Criteria and principles used by institutional investors and proxy advisory firms to evaluate...&lt;\/div&gt;&lt;div id=&amp;quot;cmtt_related_articles&amp;quot; class=&amp;quot;cmtt_related_articles_wrapper&amp;quot;&gt;&lt;div class=&amp;quot;cmtt_related_title cmtt_related_articles_title&amp;quot;&gt;Related Articles: &lt;\/div&gt;&lt;ul class=&amp;quot;cmtt_related&amp;quot;&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/ko\/the-importance-of-pre-agm-shareholder-engagement-cornerstone-practices-for-greater-china-2023\/&amp;quot;&gt;The Importance of Pre-AGM Shareholder Engagement Cornerstone Practices for Greater China 2023&lt;\/a&gt;&lt;\/li&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/ko\/2023-proxy-season-preview\/&amp;quot;&gt;2023 Proxy Season Preview&lt;\/a&gt;&lt;\/li&gt;&lt;\/ul&gt;&lt;\/div&gt;&lt;div class=glossaryTooltipMoreLinkWrapper&gt;&lt;a class=glossaryTooltipMoreLink href=https:\/\/allianceadvisors.com\/ko\/glossary-index\/voting-guidelines\/ &gt;Read more...&lt;\/a&gt;&lt;\/div&gt;\" data-link=\"https:\/\/allianceadvisors.com\/ko\/glossary-index\/voting-guidelines\/\" href=\"https:\/\/allianceadvisors.com\/ko\/glossary-index\/voting-guidelines\/\" data-mobile-support=\"0\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">voting guidelines<\/a>, they may still review the proxy advisory firms&rsquo; recommendations prior to making voting decisions. When both advisory firms recommend Against Remuneration resolutions, for example, significant effort is required to lobby investors (including those that rely on their own internal guidelines) to support the proposal.<\/p>\n<\/div><\/div><\/div><style>.vcex-icon-box.vcex_69d6a703680ce{background-color:#ffffff;}.vcex-icon-box.vcex_69d6a703680ce .vcex-icon-box-heading{font-size:1.23em;font-weight:600;}.vcex-icon-box.vcex_69d6a703680ce .vcex-icon-box-icon{color:#393939;background-color:#f5b335;height:50px;}.vcex-icon-box.vcex_69d6a703680ce .vcex-icon-box-symbol{width:50px;}<\/style><div class=\"vcex-module vcex-icon-box vcex-icon-box-one wpex-flex wpex-shadow-xl wpex-py-40 wpex-px-40 wpex-text-left vcex_69d6a703680ce\"><div class=\"vcex-icon-box-symbol vcex-icon-box-symbol--icon wpex-flex-shrink-0 wpex-mr-20\"><div class=\"vcex-icon-box-icon wpex-items-center wpex-justify-center wpex-child-inherit-color wpex-text-center wpex-leading-none wpex-flex wpex-w-100 wpex-text-1 wpex-border-solid wpex-border-0 wpex-font-light\">3<\/div><\/div><div class=\"vcex-icon-box-text wpex-flex-grow\"><h3 class=\"vcex-icon-box-heading wpex-heading wpex-mb-10\">Consider a supplemental filing to &ldquo;tell your side of the story&rdquo;<\/h3><div class=\"vcex-icon-box-content wpex-last-mb-0 wpex-clr\"><p>Institutional investors&rsquo; <a class=\"glossaryLink cmtt_Institutional Shareholder\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Stewardship&lt;\/div&gt;&lt;div class=glossaryItemBody&gt; The responsible and active oversight of investment holdings by institutional shareholders to...&lt;\/div&gt;&lt;div id=&amp;quot;cmtt_related_articles&amp;quot; class=&amp;quot;cmtt_related_articles_wrapper&amp;quot;&gt;&lt;div class=&amp;quot;cmtt_related_title cmtt_related_articles_title&amp;quot;&gt;Related Articles: &lt;\/div&gt;&lt;ul class=&amp;quot;cmtt_related&amp;quot;&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/ko\/south-korean-consumer-products-company\/&amp;quot;&gt;Case Study: Activism&lt;\/a&gt;&lt;\/li&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/ko\/the-importance-of-pre-agm-shareholder-engagement-cornerstone-practices-for-greater-china-2023\/&amp;quot;&gt;The Importance of Pre-AGM Shareholder Engagement Cornerstone Practices for Greater China 2023&lt;\/a&gt;&lt;\/li&gt;&lt;\/ul&gt;&lt;\/div&gt;&lt;div class=glossaryTooltipMoreLinkWrapper&gt;&lt;a class=glossaryTooltipMoreLink href=https:\/\/allianceadvisors.com\/ko\/glossary-index\/stewardship\/ &gt;Read more...&lt;\/a&gt;&lt;\/div&gt;\"  data-link=\"https:\/\/allianceadvisors.com\/ko\/glossary-index\/stewardship\/\"  href=\"https:\/\/allianceadvisors.com\/ko\/glossary-index\/stewardship\/\"  data-mobile-support=\"0\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex='0' role='link'>Stewardship<\/a> teams customarily control the vote decision making process and may seek input from the investment side of the house (PM or analysts) on certain matters. Drafting, filing, and sharing supplemental information with investors may help counter an against recommendation when companies are able to provide additional context and\/or the rationale behind the issue that led the <a href=\"https:\/\/allianceadvisors.com\/ko\/transactions-categories\/proxy-logistics-virtual-shareholder-meetings-ko\/\">proxy advisory firm<\/a> to recommend against a proposal. Articulating the rationale on why shareholders should support the contentious proposal in a public filing has a secondary benefit in that it provides management the ability to present arguments to investors who declined engagement offers before they vote.<\/p>\n<p>Companies should argue why supporting the proposal is in shareholders&rsquo; best interests rather than focusing on disagreeing with ISS&rsquo; or Glass Lewis&rsquo; rationale.<\/p>\n<\/div><\/div><\/div><style>.vcex-icon-box.vcex_69d6a70368e11{background-color:#ffffff;}.vcex-icon-box.vcex_69d6a70368e11 .vcex-icon-box-heading{font-size:1.23em;font-weight:600;}.vcex-icon-box.vcex_69d6a70368e11 .vcex-icon-box-icon{color:#ffffff;background-color:#747474;height:50px;}.vcex-icon-box.vcex_69d6a70368e11 .vcex-icon-box-symbol{width:50px;}<\/style><div class=\"vcex-module vcex-icon-box vcex-icon-box-one wpex-flex wpex-shadow-xl wpex-py-40 wpex-px-40 wpex-text-left vcex_69d6a70368e11\"><div class=\"vcex-icon-box-symbol vcex-icon-box-symbol--icon wpex-flex-shrink-0 wpex-mr-20\"><div class=\"vcex-icon-box-icon wpex-items-center wpex-justify-center wpex-child-inherit-color wpex-text-center wpex-leading-none wpex-flex wpex-w-100 wpex-text-1 wpex-border-solid wpex-border-0 wpex-font-light\">4<\/div><\/div><div class=\"vcex-icon-box-text wpex-flex-grow\"><h3 class=\"vcex-icon-box-heading wpex-heading wpex-mb-10\">Assemble your Team &amp; Engage with Investors<\/h3><div class=\"vcex-icon-box-content wpex-last-mb-0 wpex-clr\"><p>Ensure that you have the appropriate team of internal and external subject matter experts to navigate and advise you. An effective team often includes representatives from legal, <a class=\"glossaryLink cmtt_Institutional Shareholder Engagement\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Investor Relations&lt;\/div&gt;&lt;div class=glossaryItemBody&gt; The function within a company responsible for managing communication and relationships with...&lt;\/div&gt;&lt;div id=&amp;quot;cmtt_related_articles&amp;quot; class=&amp;quot;cmtt_related_articles_wrapper&amp;quot;&gt;&lt;div class=&amp;quot;cmtt_related_title cmtt_related_articles_title&amp;quot;&gt;Related Articles: &lt;\/div&gt;&lt;ul class=&amp;quot;cmtt_related&amp;quot;&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/ko\/annual-equity-plan-replenishments\/&amp;quot;&gt;Navigating Annual Consecutive Equity Plan Replenishments: Data Insights and a Handy Checklist for Companies&lt;\/a&gt;&lt;\/li&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/ko\/blackrock-voting-policy-2024-taiwan\/&amp;quot;&gt;BlackRock Voting Policy 2024: Taiwan&lt;\/a&gt;&lt;\/li&gt;&lt;\/ul&gt;&lt;\/div&gt;&lt;div class=glossaryTooltipMoreLinkWrapper&gt;&lt;a class=glossaryTooltipMoreLink href=https:\/\/allianceadvisors.com\/ko\/glossary-index\/investor-relations\/ &gt;Read more...&lt;\/a&gt;&lt;\/div&gt;\" data-link=\"https:\/\/allianceadvisors.com\/ko\/glossary-index\/investor-relations\/\" href=\"https:\/\/allianceadvisors.com\/ko\/glossary-index\/investor-relations\/\" data-mobile-support=\"0\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Investor Relations<\/a>, sustainability, and someone who can articulate compensation practices.<\/p>\n<p>The external advisory team should include outside counsel, a <a class=\"glossaryLink cmtt_Institutional Shareholder Engagement\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Shareholder Engagement&lt;\/div&gt;&lt;div class=glossaryItemBody&gt; The process of establishing and maintaining communication and relationships between...&lt;\/div&gt;&lt;div id=&amp;quot;cmtt_related_articles&amp;quot; class=&amp;quot;cmtt_related_articles_wrapper&amp;quot;&gt;&lt;div class=&amp;quot;cmtt_related_title cmtt_related_articles_title&amp;quot;&gt;Related Articles: &lt;\/div&gt;&lt;ul class=&amp;quot;cmtt_related&amp;quot;&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/ko\/transactions\/&amp;quot;&gt;&#44144;&#47000; &#49324;&#47168;&lt;\/a&gt;&lt;\/li&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/ko\/south-korean-consumer-products-company\/&amp;quot;&gt;Case Study: Activism&lt;\/a&gt;&lt;\/li&gt;&lt;\/ul&gt;&lt;\/div&gt;&lt;div class=glossaryTooltipMoreLinkWrapper&gt;&lt;a class=glossaryTooltipMoreLink href=https:\/\/allianceadvisors.com\/ko\/glossary-index\/shareholder-engagement\/ &gt;Read more...&lt;\/a&gt;&lt;\/div&gt;\" data-link=\"https:\/\/allianceadvisors.com\/ko\/glossary-index\/shareholder-engagement\/\" href=\"https:\/\/allianceadvisors.com\/ko\/glossary-index\/shareholder-engagement\/\" data-mobile-support=\"0\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">shareholder engagement<\/a>\/<a class=\"glossaryLink cmtt_Proxy Solicitation\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Proxy solicitation&lt;\/div&gt;&lt;div class=glossaryItemBody&gt; Proxy solicitation is the process of a company seeking votes from its shareholders on corporate...&lt;\/div&gt;&lt;div id=&amp;quot;cmtt_related_articles&amp;quot; class=&amp;quot;cmtt_related_articles_wrapper&amp;quot;&gt;&lt;div class=&amp;quot;cmtt_related_title cmtt_related_articles_title&amp;quot;&gt;Related Articles: &lt;\/div&gt;&lt;ul class=&amp;quot;cmtt_related&amp;quot;&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/ko\/2023-proxy-season-preview\/&amp;quot;&gt;2023 Proxy Season Preview&lt;\/a&gt;&lt;\/li&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/ko\/2023-u-s-proxy-season-review\/&amp;quot;&gt;2023 U.S. Proxy Season Review&lt;\/a&gt;&lt;\/li&gt;&lt;\/ul&gt;&lt;\/div&gt;&lt;div class=glossaryTooltipMoreLinkWrapper&gt;&lt;a class=glossaryTooltipMoreLink href=https:\/\/allianceadvisors.com\/ko\/glossary-index\/proxy-solicitation\/ &gt;Read more...&lt;\/a&gt;&lt;\/div&gt;\" data-link=\"https:\/\/allianceadvisors.com\/ko\/glossary-index\/proxy-solicitation\/\" href=\"https:\/\/allianceadvisors.com\/ko\/glossary-index\/proxy-solicitation\/\" data-mobile-support=\"0\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">proxy solicitation<\/a> firm, and if required, a remuneration consultant.<\/p>\n<p>The key to overcoming an adverse proxy advisory recommendation is to have an organized engagement program to engage with and help quell investors&rsquo; concerns and lobby for their support. Preparing in advance of investor calls is critical and should include reviewing their historical voting at your firm, understanding their <a class=\"glossaryLink cmtt_Proxy Solicitation\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Proxy Voting&lt;\/div&gt;&lt;div class=glossaryItemBody&gt; The process by which shareholders cast their votes on corporate matters by proxy, rather than...&lt;\/div&gt;&lt;div id=&amp;quot;cmtt_related_articles&amp;quot; class=&amp;quot;cmtt_related_articles_wrapper&amp;quot;&gt;&lt;div class=&amp;quot;cmtt_related_title cmtt_related_articles_title&amp;quot;&gt;Related Articles: &lt;\/div&gt;&lt;ul class=&amp;quot;cmtt_related&amp;quot;&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/ko\/privacy-policy\/&amp;quot;&gt;Privacy Policy&lt;\/a&gt;&lt;\/li&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/ko\/the-importance-of-pre-agm-shareholder-engagement-cornerstone-practices-for-greater-china-2023\/&amp;quot;&gt;The Importance of Pre-AGM Shareholder Engagement Cornerstone Practices for Greater China 2023&lt;\/a&gt;&lt;\/li&gt;&lt;\/ul&gt;&lt;\/div&gt;&lt;div class=glossaryTooltipMoreLinkWrapper&gt;&lt;a class=glossaryTooltipMoreLink href=https:\/\/allianceadvisors.com\/ko\/glossary-index\/proxy-voting\/ &gt;Read more...&lt;\/a&gt;&lt;\/div&gt;\"  data-link=\"https:\/\/allianceadvisors.com\/ko\/glossary-index\/proxy-voting\/\"  href=\"https:\/\/allianceadvisors.com\/ko\/glossary-index\/proxy-voting\/\"  data-mobile-support=\"0\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex='0' role='link'>proxy voting<\/a> policies, and researching their historical track record on similar proposals.<\/p>\n<p>Some investors may request future commitments that the issuer may need Board approval on.<\/p>\n<p>Identifying large investor votes as they come in is another crucial part of the process to help determine if strategies need to be adjusted in real time. Companies should closely monitor the vote and consider additional solicitation tools to help maximize support as needed.<\/p>\n<\/div><\/div><\/div><\/div>[\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]\n<h2>Conclusion<\/h2>\n<p>Receiving an adverse recommendation from ISS or Glass Lewis can be stress inducing, but utilising advisors who are experienced in navigating similar situations will ensure the best possible outcome while allowing company personnel to focus on running the company&rsquo;s core business.[\/vc_column_text][\/vc_column][\/vc_row]\n<\/p><\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]Winning favorable vote recommendations from the proxy advisors, ISS and Glass Lewis, certainly make a company\u2019s annual shareholder meeting easier. However, when faced with an adverse vote recommendation, issuers should know there are still options on the table. The window for action is tight though, so preparing in advance is critical. Issuers can begin&hellip;<\/p>\n","protected":false},"author":41,"featured_media":44071,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[227],"tags":[],"post_series":[],"ppma_author":[464,471],"class_list":["post-44077","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-ko","entry","has-media"],"authors":[{"term_id":464,"user_id":30,"is_guest":0,"slug":"e-martinez","display_name":"Etelvina Martinez","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/14c2ef721f325d6b1e79278decbbd7521ed8630a1b91767976dcc06bb85f2a51?s=96&d=mm&r=g","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""},{"term_id":471,"user_id":41,"is_guest":0,"slug":"domenick","display_name":"Domenick de Robertis","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/da2aecfdfab79808473be46958a1bfdeeaa7faf5c48c65e246f3f5ff90663f51?s=96&d=mm&r=g","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/allianceadvisors.com\/ko\/wp-json\/wp\/v2\/posts\/44077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/allianceadvisors.com\/ko\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/allianceadvisors.com\/ko\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/allianceadvisors.com\/ko\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/allianceadvisors.com\/ko\/wp-json\/wp\/v2\/comments?post=44077"}],"version-history":[{"count":14,"href":"https:\/\/allianceadvisors.com\/ko\/wp-json\/wp\/v2\/posts\/44077\/revisions"}],"predecessor-version":[{"id":52558,"href":"https:\/\/allianceadvisors.com\/ko\/wp-json\/wp\/v2\/posts\/44077\/revisions\/52558"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/allianceadvisors.com\/ko\/wp-json\/wp\/v2\/media\/44071"}],"wp:attachment":[{"href":"https:\/\/allianceadvisors.com\/ko\/wp-json\/wp\/v2\/media?parent=44077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/allianceadvisors.com\/ko\/wp-json\/wp\/v2\/categories?post=44077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/allianceadvisors.com\/ko\/wp-json\/wp\/v2\/tags?post=44077"},{"taxonomy":"post_series","embeddable":true,"href":"https:\/\/allianceadvisors.com\/ko\/wp-json\/wp\/v2\/post_series?post=44077"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/allianceadvisors.com\/ko\/wp-json\/wp\/v2\/ppma_author?post=44077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}