WASHINGTON (AP) — A prominent firm in the business of advising big shareholders on how to vote in elections for company directors is paying a $300,000 fine to settle federal civil charges of failing to protect clients' confidential voting information.
Institutional Shareholder Services agreed to the penalty in a settlement announced Thursday with the Securities and Exchange Commission. Its clients are institutional investors such as large mutual funds and pension funds. The firm, based in Rockville, Md., didn't admit or deny the SEC's allegations.
The SEC said that over five years, a former ISS employee gave a vote-gathering firm hired by companies information showing how more than 100 ISS clients planned to vote on ballots for directors. In exchange for getting the information before elections, the SEC said the firm gave the employee about $11,500 in tickets to concerts and sporting events as well as meals and an airline ticket.
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