Nashville Standard

Washington, D.C. - In a recent development, United States Senator Bill Hagerty and Representative Bryan Steil have taken a stand against Institutional Shareholder Services (ISS) by demanding answers regarding the company's proxy voting services.

Senator Hagerty and Representative Steil, both members of key financial committees, have expressed concerns over recent statements made by Lorraine Kelly, the Head of Governance Solutions at ISS. Kelly's acknowledgment in a public interview that investors are opposing ESG proposals due to their lack of connection to long-term shareholder value has raised eyebrows. Despite this admission, ISS has continued to recommend institutional shareholders to support such proposals, leading to suspicions of potential breaches of fiduciary duties.

In a letter addressed to Gary Retelny, the President & CEO of ISS, Senator Hagerty and Representative Steil expressed their intent to probe into the company's proxy voting services. The letter emphasized the need for clarity and documentation regarding Kelly's statements and the implications they carry.

The letter highlighted concerns about ISS potentially exploiting its influence over proxy voting to advance a partisan political agenda. An analysis of ISS's voting recommendations in 2023 revealed a pattern where the company supported a majority of environmental, social, and political proposals from left-leaning proponents while backing none from right-leaning proponents.

ISS's significant market position has granted it substantial influence over proxy voting, corporate governance, and the long-term returns of American investors. As a result, Hagerty and Steil are seeking answers and documentation to ensure transparency and accountability within ISS's practices.

The letter concluded with a request for responses to specific questions and requests by April 30, 2024, underlining the urgency and seriousness with which the matter is being approached.