According to data from ISS, companies are more willing that ever to negogiate with shareholders on issues such as climate change and boardroom diversity.
While management has traditionally pushed back on such proposals, these hot button issues are drawing the attention of both retail shareholders and the media. Instituional investors are also paying attention and shifting their voting behaviour which has accelerated this change - where BlackRock and Vanguard both voted in favor of client proposals in 2017 and State Street voted against all-male boards.
As such, companies such as Amazon and Citigroup are reaching agreements with their shareholders on policy changes ahead of AGMs. Amazingly, this has led to investors withdrawing over 40% of environmental and social proposals submitted for vote in 2018.
With this industry change, it's critical for your team to evaluate your shareholder base and ensure alignment on such policies. With analytics and shareholder management tools such as those offered by BHRD, it's easier than ever to keep track of shareholder views within their profiles and to ensure such hot button issues are proactively managed.
Read the full article on Bloomberg here.
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