2018 Corporate Governance Report
Managing Risk and Enhancing Performance
Proxy votes have always been a right of institutional investors. They are also a fiduciary requirement, according to the DOL. However, over the past year proxy voting gained widespread attention.
Three primary reasons explain why this topic moved from the back office to the agendas of fund trustees, corporate boards of directors and institutional investors:
- Environmental, Social and Governance (ESG) factors influence more institutional investors
- Majority votes on proxy issues, which were once rare, are more common,and
- Shareholder proposals raise ESG factors.
Public pension and multiemployer funds continue to advocate for improved performance, best practices and increased shareholder value through corporate governance and proxy voting initiatives.
Contact your Segal Marco Advisors consultant to learn more about how proxy voting can help ensure corporate boards’ actions align with the interests of your plan.