1. ISS advises against Morgan Stanley's equity incentive plan expansion. 2. Proxy adviser intensified opposition reflects broader scrutiny on Wall Street practices.
The rejection by ISS may diminish investor confidence in MS management and governance, similar to historical cases where proxy advisories influenced shareholder decisions significantly, potentially leading to a drop in stock price.
The proxy adviser's stance could pressure MS's board and impact future governance structures, making it significant to investors.
Immediate investor reactions to shareholder recommendations usually affect stock prices quickly, as seen in past instances like the backlash against incentive plans at large banks.