Investor Dissatisfaction with Boards Grows, New ProxyPulse Report Reveals
- Growing numbers of individual investors entering the market
- Preference for virtual shareholder meetings remains high
- Shareholder support at a 5-year low for management and shareholder proposals
- Support for Say-on-Pay proposals at lowest in five years
- Shareholder support for environmental and social proposals decreased to lowest in five years
"Shareholder support was at a 5-year low for management and shareholder proposals alike," said Chuck Callan, Broadridge SVP Regulatory Affairs, a co-author of the report. "The proportion of company shares held by individual investors rose to
Specifically, the data show that:
- Expectations of Directors Are Increasing: 654 directors failed to attain majority support, the greatest number in five years.
- Support Has Declined for Say-on-Pay: Support for Say-on-Pay proposals (at
86.3% on average) was the lowest in five years. - More Shareholder Proposals and Less Support: While there were more shareholder proposals (588) than at any time over the past five years, shareholder support fell to
24.6% on average (a 10-percentage point drop from last season). - The Climate Has Cooled for ESG: Support for environmental and social proposals decreased to
25.5% , on average, from30% the prior season and was the lowest in five years. - More Retail Investors Are Finding Their Voice: Voting participation by individual shareholders increased to
29.6% from29.4% last year.
The 2023 Proxy season was notable as well for the continued wide divergence in voting sentiment between individual and institutional shareholders. Individual investors cast only
Preference for Virtual Shareholder Meetings Remains High
Companies and shareholders continue to realize the benefits of online meetings and technology continues to advance the trend. The number of virtual-only meetings was close to the all-time high at the height of the pandemic, and few companies are returning to in-person only meeting format.
In the first six months of 2023, there were 1,815 "virtual only" meetings, close to the all-time during the pandemic (1,832 in 2022 and 1,891 in 2021).
The Broadridge ProxyPulse™ report highlights voting trends over the past five proxy seasons. Download the full report.
About ProxyPulse
ProxyPulse™ is based in part on analysis of company Form 8-K filings from EDGAR and Broadridge's processing of shares held in street name, which processes over 750 million equity positions. Shareholder voting trends during the proxy season represent a snapshot in time and may not be predictive of full-year results.
About Broadridge
Broadridge Financial Solutions (NYSE: BR), a global Fintech leader with over
Broadridge Media contact:
Tatjana Kulkarni
+1 203-285-0766
Tatjana.kulkarni@broadridge.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/investor-dissatisfaction-with-boards-grows-new-proxypulse-report-reveals-301933031.html
SOURCE Broadridge Financial Solutions, Inc.