This Note explores a solution to the potential problem with proxy advisory firms that involves an inherent conflict of interest arising from the structure of two services—advisory and consulting services—offered at certain proxy advisory firms in the United States. The solution proposed in this paper applies a Glass-Steagall framework to breakup these two services of the proxy advisory firms. In theory, this would eliminate the inherent conflicts of interest.
REDUCING CONFLICTS OF INTEREST: A "GLASS-STEAGALL" SPLIT OF ADVISORY AND CONSULTING SERVICES OF PROXY ADVISORY FIRMS,
15 Brook. J. Corp. Fin. & Com. L.
Available at: https://brooklynworks.brooklaw.edu/bjcfcl/vol15/iss2/7