New York Times (August 16)
“States have been competing for corporate charters since the late 1800s. The incentives are high: About 30 percent of Delaware’s revenue in 2024 came from franchise taxes.” But Texas has taken things to a new low, with recent legislation creating “a wild west for corporate governance” by helping corporations dodge proxy access. “Corporations incorporated or headquartered in Texas can restrict shareholder proposals to only their largest shareholders… owning at least $1 million in stock or 3 percent of the company.” Texas is also trying to muffle proxy advisors with measures that effectively block them “from siding against management on any shareholder proposal.”
Tags: Corporate charters, Corporate governance, Corporations, Delaware, Legislation, Muffle, Proxy access, Proxy advisors, Restrict, Shareholder proposals, Texas, Wild west
Financial Times (August 3)
“Companies denied votes on a record number of resolutions during this proxy season after US regulators made it harder for shareholders to demand changes related to climate, diversity and labour rights.” As a result, the number of shareholder proposals is down from last year. “ISS-Corporate found that 21 per cent of environmental and social proposals were omitted this year, compared with only 9 per cent last year.” The SEC granted nearly a third more “no-action” requests, which allow companies to omit shareholder proposals from proxy materials.
Tags: Climate, Companies, Denied, Diversity, Environmental, ISS, Labour rights, Proxy season, Regulators, Resolutions, SEC, Shareholder proposals, Social, U.S., Votes
Investment Week (August 22)
“BlackRock’s support for shareholder proposals on environmental and social issues has plummeted to a new low, now representing less than one-tenth of the backing these proposals received in 2021…. The firm only supported 4% (20 out of 593) of proposals put forward by shareholders on climate and natural capital and company impacts on people.” This marked a significant decline from “the 47% high in 2021, at the height of the ESG investing boom.”
Tags: 2021, BlackRock, Climate, Company impacts, ESG, Investing boom, Natural capital, Plummeted, Shareholder proposals, Support
New York Times (August 17)
“The political fight over environmental, social and governance investing continues in corporate America,” though opponents appear to be “making little headway in the boardroom.” During the first six months of 2023, Morningstar “tracked 43 anti-E.S.G. shareholder proposals,” finding that “on average they received only 7 percent support, compared with more than 30 percent across all proposals.”
Tags: 2023, Anti-E.S.G., Boardroom, Environmental, Governance, Headway, Investing, Morningstar, Political fight, Shareholder proposals, Social, U.S.
Investments and Pensions Europe (May 18)
“We’re now about half way through peak voting season in Europe and North America, which tends to take place between April and June.” Companies are fielding both a high volume and range of proposals. “At Amazon alone, there are 18 shareholder proposals going to vote in 2023, ranging from requests for human rights audits on its technology, through to disclosure around animal welfare issues.”
Tags: Amazon, Animal welfare, Disclosure, Europe, Human rights audits, North America, Peak, Range, Shareholder proposals, Technology, Volume, Voting season
Financial Times (December 23)
In a “win for activists that signals trouble for other US companies,” the SEC “has rejected Apple’s petition to block three shareholder proposals from going to a vote at its next annual meeting…. Last month, the regulator changed its policies to make it harder for companies to win regulatory support to reject investor petitions.”
Tags: Activists, AGM, Apple, Investor, Petition, Petitions, Policies, Regulator, Reject, SEC, Shareholder proposals, Signals, Trouble, Vote, Win
