Proxy Voting: Looking Out for Your Interests
Learn how boards are safeguarding their plans’ investments in public companies.
For trustees, voting proxies and advocating for strong corporate governance at public companies helps ensure management acts in the best interests of plan participants.
Is your fiduciary board keeping track of how proxy ballots are voted?
The year 2016 saw coalitions of benefit plans, money managers and other shareholders push for corporate governance and policy changes on issues ranging from executive compensation to board diversity and accountability. This report examines their efforts. Among them:
- Investors have been making a big push on “proxy access,” the ability of shareholders to nominate candidates to a company board alongside management’s candidates.
- Environmental and social issues have gone mainstream as traditional investors embrace these factors in their investment and proxy voting decisions.
- Investors are also raising questions about share repurchases in response to a surge among leading companies in buying back their stock instead of re-investing excess cash into the company.
Did you know the U.S. Department of Labor considers proxy votes to be plan assets? That means ERISA imposes fiduciary duties on voting proxies.
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.