2024 Proxy Voting Highlights Split Between Main Street and Wall Street in Corporate Elections, New Broadridge ProxyPulse™ Report Finds
Broadridge Financial Solutions' ProxyPulse™ report reveals significant trends in corporate elections for 2024. Individual investor ownership reached a decade-high at 31.7% of shares held in street name, with voting participation increasing to 29.8%. Individuals showed stronger support for board recommendations compared to institutional investors.
The report highlights increased shareholder support for director and say-on-pay proposals, with directors receiving 91% approval and say-on-pay garnering 88% support. Notably, only 481 directors failed to win majority support, the lowest in four years.
However, environmental and social proposals saw declining support, averaging 21.2%, the lowest in eight years. A clear divergence in voting patterns emerged, with individuals supporting these proposals at 14.8% compared to institutions at 22.4%.
Il rapporto ProxyPulse™ di Broadridge Financial Solutions rivela tendenze significative nelle elezioni aziendali per il 2024. La proprietà degli investitori individuali ha raggiunto un massimo decennale del 31,7% delle azioni detenute a nome di terzi, con una partecipazione al voto aumentata al 29,8%. Gli individui hanno mostrato un sostegno più forte per le raccomandazioni del consiglio rispetto agli investitori istituzionali.
Il rapporto evidenzia un aumento del supporto degli azionisti per le proposte riguardanti i direttori e le questioni relative alla retribuzione, con i direttori che ricevono un'approvazione del 91% e le questioni relative alla retribuzione che ottengono l'88% di sostegno. Notavelmente, solo 481 direttori non hanno ottenuto il sostegno della maggioranza, il numero più basso in quattro anni.
Tuttavia, il sostegno alle proposte ambientali e sociali ha visto un calo, con una media del 21,2%, il più basso negli ultimi otto anni. È emersa una chiara divergenza nei modelli di voto, con gli individui che sostengono queste proposte al 14,8% rispetto alle istituzioni al 22,4%.
El informe ProxyPulse™ de Broadridge Financial Solutions revela tendencias significativas en las elecciones corporativas para 2024. La propiedad de los inversores individuales alcanzó un máximo en una década del 31,7% de las acciones mantenidas en nombre de terceros, con una participación en la votación que aumentó a 29,8%. Los individuos mostraron un apoyo más fuerte a las recomendaciones de la junta en comparación con los inversores institucionales.
El informe destaca un aumento en el apoyo de los accionistas a las propuestas sobre directores y la retribución, con los directores recibiendo una aprobación del 91% y las propuestas de retribución obteniendo un apoyo del 88%. Cabe destacar que solo 481 directores no lograron obtener el apoyo de la mayoría, el número más bajo en cuatro años.
No obstante, el apoyo a las propuestas ambientales y sociales vio una disminución, promediando el 21,2%, el más bajo en ocho años. Emergió una clara divergencia en los patrones de votación, con los individuos apoyando estas propuestas con un 14,8% en comparación con las instituciones que se sitúan en un 22,4%.
브로드리지 금융 솔루션의 ProxyPulse™ 보고서는 2024년 기업 선거의 중요한 트렌드를 보여줍니다. 개인 투자자의 소유권은 31.7%로 10년 만에 최고치를 기록했으며, 투표 참여율도 29.8%로 증가했습니다. 개인들은 기관 투자자들에 비해 이사회 권고에 대한 강한 지지를 보였습니다.
보고서는 이사 및 보수 관련 제안에 대한 주주 지원 증가를 강조하며, 이사들은 91%의 승인률을 기록하고 보수 문제는 88%의 지지를 얻었습니다. 특히, 481명의 이사만이 과반수의 지지를 얻지 못했으며, 이는 4년 만에 가장 낮은 수치입니다.
그러나 환경 및 사회 관련 제안에 대한 지원은 감소하여 평균 21.2%로 8년 만에 최저치를 기록했습니다. 투표 패턴에서 명확한 차이가 나타났으며, 개인들은 이러한 제안에 대해 14.8%의 지지를 보인 반면, 기관들은 22.4%의 지지를 보였습니다.
Le rapport ProxyPulse™ de Broadridge Financial Solutions révèle des tendances significatives dans les élections d'entreprises pour 2024. La détention d'actions par des investisseurs individuels a atteint un maximum décennal de 31,7% des actions détenues au nom de tiers, avec une participation au vote augmentant à 29,8%. Les individus ont montré un soutien plus fort pour les recommandations du conseil d'administration par rapport aux investisseurs institutionnels.
Le rapport souligne l'augmentation du soutien des actionnaires pour les propositions concernant les administrateurs et la rémunération, avec 91% d'approbation pour les directeurs et 88% de soutien pour les questions de rémunération. Notamment, seulement 481 directeurs n'ont pas réussi à obtenir le soutien de la majorité, le chiffre le plus bas en quatre ans.
Cependant, le soutien aux propositions environnementales et sociales a connu une baisse, atteignant en moyenne 21,2%, le plus bas en huit ans. Une divergence claire dans les modèles de vote a émergé, les individus soutenant ces propositions à 14,8% contre 22,4% pour les institutions.
Der ProxyPulse™-Bericht von Broadridge Financial Solutions zeigt bedeutende Trends bei den Unternehmenswahlen für 2024. Der Anteil der individuellen Investoren erreichte mit 31,7% der auf Straßenname gehaltenen Aktien einen zehnjährigen Höchststand, während die Beteiligung an Abstimmungen auf 29,8% anstieg. Einzelpersonen zeigten eine stärkere Unterstützung für die Empfehlungen des Vorstands im Vergleich zu institutionellen Investoren.
Der Bericht hebt die gestiegene Unterstützung der Aktionäre für Vorschläge zu Direktoren und zur Vergütung hervor, wobei die Direktoren 91% Zustimmung erhielten und die Vergütungsvorschläge 88% Unterstützung erhielten. Bemerkenswert ist, dass nur 481 Direktoren nicht die Mehrheit der Stimmen erhielten, der niedrigste Wert seit vier Jahren.
Allerdings verzeichneten Umwelt- und Sozialvorschläge einen Rückgang der Unterstützung, mit einem Durchschnitt von 21,2%, dem niedrigsten Wert seit acht Jahren. Es trat eine deutliche Divergenz in den Abstimmungsmustern auf, wobei Einzelpersonen diese Vorschläge mit 14,8% im Vergleich zu Institutionen mit 22,4% unterstützten.
- Individual investor ownership reached a 10-year high at 31.7% of shares held in street name
- Individual investor voting participation increased to 29.8%, the highest in nine years
- Director proposals received 91% average approval
- Say-on-pay proposals received 88% average support, a four-year high
- Only 481 directors failed to win majority support, the lowest in four years
- Support for environmental and social proposals declined to 21.2%, the lowest level in eight years
- Divergence in voting patterns between individual and institutional investors on environmental and social proposals
Insights
The latest ProxyPulse™ report from Broadridge reveals significant trends in shareholder voting patterns, with potential implications for corporate governance and investor relations. The increase in individual investor ownership to 31.7% and their higher voting participation rate of
The divergence between individual and institutional voting patterns on environmental and social proposals is particularly noteworthy. With individual investors showing more support for board recommendations, companies may need to reassess their approach to ESG initiatives and how they communicate these to different investor segments.
The improved support for director elections (91%) and say-on-pay proposals (88%) suggests a generally positive sentiment towards corporate leadership and compensation practices. This could be attributed to the improved market valuations, indicating a correlation between financial performance and shareholder satisfaction.
However, the decline in support for environmental & social proposals to 21.2% is a significant trend that could impact future ESG-related initiatives. Companies may need to recalibrate their ESG strategies or improve their communication on these issues to gain broader shareholder support.
The ProxyPulse™ report highlights a nuanced shift in corporate governance dynamics. The rise in individual investor ownership and voting participation is a significant development that could reshape the balance of power in corporate decision-making. This trend may lead to more retail-friendly communication strategies and potentially influence the types of proposals put forward by boards.
The increased support for directors and say-on-pay proposals suggests a general alignment between shareholder expectations and company performance. However, this could also indicate a need for more rigorous scrutiny of these aspects to ensure they truly reflect good governance practices.
The declining support for environmental and social proposals, particularly the stark difference between individual (14.8%) and institutional (22.4%) support, presents a complex challenge. It may reflect a disconnect between the long-term value creation potential of ESG initiatives and short-term investor priorities. Companies will need to bridge this gap through more effective communication and demonstration of the tangible benefits of ESG strategies.
This report underscores the importance of tailored engagement strategies for different investor segments and the need for companies to adapt their governance practices to an evolving shareholder landscape.
Individual investor ownership and voting is rising
"There continues to be a marked difference in how individual and institutional shareholders vote on environmental and social proposals," said Chuck Callan, Broadridge SVP Regulatory Affairs and co-author of the report. "As a result, many fund companies and institutional asset managers now provide their investors with a vote or a say on how matters at portfolio companies are voted."
Director and Say-on-pay Support Increased
Shareholder support for corporate directors and say-on-pay proposals increased, as company market valuations improved. On average, director proposals were approved by
Environmental & Social Support Continues to Decline
Backing for environmental & social proposals declined. While more proposals were on the ballot (483) in meetings in the first 6 months of this year, average support fell to
The Broadridge ProxyPulse™ report highlights voting trends over the past five proxy seasons. Download the full report.
About ProxyPulse
Broadridge's ProxyPulse™ report provides an in-depth analysis of the 2024 spring proxy season, examining trends in shareholder meetings, individual and institutional investor voting actions and corporate governance reforms. It highlights key regulatory developments shaping the season's outcomes, and what to expect in 2025.
ProxyPulse™ is based on Broadridge's processing of shares held in street name at the 1,000+ broker-dealers and custodian banks that we service, over 750 million equity positions.
About Broadridge
Broadridge Financial Solutions (NYSE: BR), is a global technology leader with the trusted expertise and transformative technology to help clients and the financial services industry operate, innovate, and grow. We power investing, governance, and communications for our clients – driving operational resiliency, elevating business performance, and transforming investor experiences.
Our technology and operations platforms underpin the daily trading of more than
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SOURCE Broadridge Financial Solutions, Inc.
FAQ
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