05/27/2011 06:50:00 AM EST
E&Y Picks up PGI’s Pieces for Corporate Governance Foothold
by Gary Larkin
While combing my Twitter and RSS feeds, I came across an
item that while not front page news is indicative of a trend I blogged about
last summer. That is the demise of Proxy Governance Inc., a 7-year-old proxy
advisory and voting firm whose primary assets were purchased by the Big 4 audit
firm Ernst & Young and the consolidation of the proxy advisory space.
While the deal closed on Feb. 1, it wasn't announced
until Tuesday for whatever reason. But maybe one of the reasons is that Ernst
& Young used the time to hire former PGI staff members and establish its
Corporate Governance Group. As part of the deal, E&Y purchased a research
application and database of corporate governance information.
In its announcement of the deal, E&Y pointed out the need for
more corporate governance services to companies due to the volatility of the
markets and changes in regulations. "More than ever, boards need to be aware of
shareholder perspectives and meaningfully engage with them," said Tom McGrath,
partner and senior vice chair of markets for Ernst & Young LLP. "This need
has increased the demand for the best practice insights Ernst & Young can
provide with these capabilities."
Read the rest of this article on the Governance Center Blog