Investors who ignore proxy advisers risk making uninformed decisions, according to a Markets analysis. While firms like ISS and Glass Lewis are not infallible, they provide structured analysis and accountability that individual investors lack. This matters because institutional investors face increasing complexity in corporate governance votes, from executive pay to board elections.

Without expert guidance, they risk voting against their own financial interests or failing to spot governance red flags. The accountability these firms provide—through transparent methodologies and potential legal liability—offers a crucial check compared to ad-hoc decision-making. As ESG scrutiny intensifies and shareholder activism rises, the debate highlights a key trade-off: accepting imperfect but professional advice versus the greater risk of going it alone in an increasingly complex market.