Standard I cases: pressure on analysts and performance staff

In short

• Your opinion, plainly stated: a recommendation must be your true view in clear, unambiguous words. Vague wording that dilutes a negative view is bias in disguise.
• Pressure has many sources: bankers and the sales desk in your own firm, the covered company, buy-side holders, a boss with a standing view, and, for measurement staff, managers, sales or friends of the CEO.
• Coverage is not a rating: a firm may promise to cover a company but never a favourable recommendation.
• Structure beats willpower: a restricted list that publishes facts only, separate reporting lines, no banker control of research and pay not tied to banking deals protect analysts. Conflicts that cannot be avoided are disclosed.
• Performance and rating staff count too: composites, attribution and manager reviews must not bend to allocation size, friendships or sales needs, and agency ratings may need independent validation.