January 13, 2020
Securities and Exchange Commission
100 F Street NE
Washington, DC 20549-1090
January 13, 2020
Re: File Number S7-22-19
To the Commission:
I am writing to say that proxy advisors have overreached the influence they should have on voting decisions that affect the livelihoods of hard-working Americans like myself. The industry is dominated by just two companies who have allowed personal political and social views to influence corporate governance recommendations to the extent that it is now damaging returns to investors.
These proxy advisors have far too much power in their influence over other peoples money and where it is invested. And when my politics may or may not agree with those of proxy advisors, it is completely improper to include them in any professional recommendation that is given.
The worst part about this situation is that that the political bias on the voting recommendations of proxy advisors is often hidden from investors when they receive the recommendations. That means that investors could be voting against their best interests without even knowing that they are doing so. This misdirection has severe consequences for investment funds that are meant for peoples retirements, not for playing political games.
Institutional Shareholder Services (ISS) and Glass Lewis have enjoyed a duopoly in the national proxy advisory market. They have used their overwhelming influence in the industry to promote environmental and social causes of their own, without consideration for investors whose sole concern for their investment is almost always to maximize the investment return.
If the recommendations of proxy advisors do not focus on the financial benefit, but instead direct investors toward partisan social causes, then the advisors simply are not doing the job that they were hired to do. They are betraying the trust of the people who depend on them, as well as the families that are counting on their retirement funds to carry them through the rest of their lives.
I dont want my financial future to be mixed up with other peoples politics. And it is extremely concerning to me that this situation has taken so long to come to light. I thank you for including my comments on the official docket, and I strongly urge the SEC to protect investors by enforcing a positive change in the industry of proxy advising.
Sincerely,
Joshua Hicks