WASHINGTON, D.C. - Congressman Robert Hurt (R-Virginia) today delivered the following statement during the House Committee on Financial Services Capital Markets and Government Sponsored Enterprises Subcommittee hearing:
[Watch Robert's opening statement by clicking above or HERE]
Robert Hurt Opening Statement Text
"Thank you Mr. Chairman. Mr. Chairman, thank you for holding today's Subcommittee hearing to examine the market power and impact of proxy advisory firms.
"As proxy advisory firms continue to have an increasingly powerful role in corporate governance, it is important that this committee conduct the proper oversight to ensure that these entities are working within the appropriate framework that leads to best practices in corporate governance.
"As an enormous market share is controlled by two proxy advisory firms, there must be sufficient transparency and accountability. A lack of these critical elements could lead to poor decisions that neither promote good corporate governance nor increase shareholder value.
"Additionally, as the SEC has acknowledged, conflicts of interest may arise when proxy advisory firms both provide voting recommendations for shareholder votes and simultaneously offer consulting services to the same company. An appropriate level of oversight, transparency, and accountability will ensure that investors will be protected and it will strengthen corporate governance.
"I'd like to thank our distinguished witnesses who have appeared today before our subcommittee. I look forward to their testimony.
"Thank you, Mr. Chairman. I yield back the balance of my time."