"I would say most of the big end of town don't just blindly follow the recommendations,they're having their own discussions as well. I don't think it's fair to make a blanket statement that everyone's just doing what the proxy advisors tell them."
US-headquartered Russell is a top 30 investor in ASX-listed retailer Harvey Norman and also holds shares of Wesfarmers – two companies whose boards have in recent weeks criticised proxy firms which advise investors on corporate governance.
Harvey Norman founder Gerry Harvey last weektoldThe Age andHerald that regulators should investigate proxy advisers,after prominent firms Ownership Matters and ISS backed corporate agitator Stephen Mayne's bid for a seat on the retailer's board.
He also criticised super funds for"not bothering to do the work"and instead just following the recommendation of their advisers."They have an agenda,and the super funds are falling into the trap unbelievably easily,"he said.
Mr Harvey's comments echo thosemade last week by Ramsay Health chairman Michael Siddle,who said proxy advisers had gone"too far"and had lost sight of real issues on remuneration after the company received a'first strike'against its remuneration report outlining executive pay.
Wesfarmers chairman Michael Chaney alsoslammed the "frustrating" issue and blamed international shareholders following proxy advice for the company's 21 per cent vote against its remuneration report.
"When there are things that may be controversial,we'll take the views from the proxy adviser on board,but then we will also do our own work internally to see if we should be voting that way,"Mr Zenonos said.