Without additional transparency and tighter enforcement of proxy-voting requirements, publicly-held companies could be pressured into accommodating political agendas that are detached from the economic interests of retirement funds, according to a U.S. Department of Labor Inspector General audit released in March.

Since average Americans are reliant upon retirement plans that invest in corporate stock, they are entitled to know whether or not shareholder recommendations are made with an eye toward potential financial gain, or if public policy motives have worked their way into the process.

Proxy advisory firms, which make shareholder recommendations to investors and research proxy issues, are an integral part of this equation and deserve more scrutiny. Institutional Shareholder Services (ISS), formerly RiskMetrics, is widely viewed as the most influential of the advisory firms. It also appears to be joining forces with organized labor. That’s bad news for investors and bad news for the economy.

Bradford Campbell, who oversaw EBSA as the Assistant Secretary of Labor during the Bush Administration warns that, “The law protects workers by prohibiting pension plan officials and others in charge of the plan’s assets from using their positions to benefit themselves or to pursue a political agenda. Proxy voting is a fiduciary duty, and the economic interests of the plan cannot be subordinated to the personal, union or corporate interests of the person casting the vote on the plan’s behalf.”

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On today’s edition of Coffee and Markets, Brad Jackson and Ben Domenech and Francis Cianfrocca are joined by ExxonMobil VP Ken Cohen to discuss the ExxonMobil’s earnings, the need for more drilling and why gas prices are so high.

We’re brought to you as always by BigGovernment and Stephen Clouse and Associates. If you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.

Related Links:

Where do your gasoline dollars go?
CNBC: Light sweet crude price history
ExxonMobil’s earnings: The real story you won’t hear in Washington
CNN Poll: Support for increased offshore oil drilling on rise
Ken Cohen at ExxonMobil Perspectives

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The third step in Robert Creamer’s ten-step plan for imposing universal health care on America, according to his prison memoir, is to attack the private insurance industry: “Our messaging program over the next two years should focus heavily on reducing the credibility of the health insurance industry and focusing on the failure of private health insurance.”

Accordingly, Creamer’s spouse, Rep. Jan Schakowsky—whose campaigns Creamer has assisted through his Strategic Consulting Group—declared at a rally for health care reform in April 2009 that she would “put the private insurance industry out of business.”

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