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A Fix for "Proxy Plumbing"

Companies hope new rules will lower the cost of communicating with anonymous shareholders.

Alix Stuart, CFO Magazine
November 1, 2010

Conflicts of interest

Brokerage firms select Broadridge to distribute proxy ballots. But, who pays for their services? The companies, of course. Brokers are spending other people's money ("OPM") which is huge conflict. Brokers also receive "kickbacks" from Broadridge for making this selection. Hard to be un-biased when you get compensated to spend OPM. Entire system needs to fixed to help companies.

Posted by Steve Jones | November 07, 2010 09:20 am

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