Individual investor ownership was at its highest level in a decade according to the ProxyPulseTM report released today by global Fintech leader, Broadridge Financial Solutions, Inc. (NYSE:BR). Individual investors owned 31.7% of shares held beneficially in street name, up from 31.5% for the prior season. More individual investors are exercising their right to vote: their voting participation ticked up to 29.8% of the shares they hold from 29.6% last year, the highest in nine years. Individuals, as a group, were more supportive of board recommendations than were institutional investors.
“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 91% of the vote while say-on-pay received 88% support. Fewer directors and pay proposals failed to attain majority support this season. Only 481 directors failed to win majority support, the lowest in four years. Say-on-pay support was at a four-year high.
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 21.2%, the lowest level in eight years, down from 25.5% last year. There continues to be a divergence in how individuals and institutional investors voted on proposals of this type. Support by individuals was 14.8% of their voted shares, on average, while support by institutions was higher at 22.4% of their voted shares.
The Broadridge ProxyPulseTM report highlights voting trends over the past five proxy seasons. Download the full report.
