How significant is proxy adviser influence?

Not as significant as you may think.

Large asset managers have come under fire for ‘sleep voting’ or ‘auto-voting’ the recommendations provided by proxy advisers.

Research from ShareAction suggests the contrary, at least for matters pertaining to ESG. The largest 3 US asset managers, do not go along with about 25% of  recommendations received from proxy advisers on ESG resolutions.

This finding suggests that the large fund managers research and tailor voting.

This is not all positive for boards confronting activist resolutions that they do not agree with. While the large US investors are less inclined to vote with activists, they are notoriously difficult to engage with. Their research is based on publicly disclosed data and information, not an understanding that arises from a constructive discussion with directors.

Find the summary of the research HERE .

© Guerdon Associates 2024
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