WASHINGTON (AP) — A prominent firm in the business of advising big shareholders on how to vote in elections for company directors is paying a $300,000 fine to settle federal civil charges of failing to protect clients' confidential voting information.
Institutional Shareholder Services agreed to the penalty in a settlement announced Thursday with the Securities and Exchange Commission. Its clients are institutional investors such as large mutual funds and pension funds. The firm, based in Rockville, Md., didn't admit or deny the SEC's allegations.
The SEC said that over five years, a former ISS employee gave a vote-gathering firm hired by companies information showing how more than 100 ISS clients planned to vote on ballots for directors. In exchange for getting the information before elections, the SEC said the firm gave the employee about $11,500 in tickets to concerts and sporting events as well as meals and an airline ticket.
Some of the ISS clients didn't want their vote information revealed before the elections at shareholder meetings because they held large stakes in the companies and their vote could move the companies' stock price, the SEC said.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
