Activists thought BlackRock, Vanguard were climate allies. Not now

In 2017, the two biggest U.S.-based fund managers, BlackRock and Vanguard — which control a combined $12 trillion in assets — both voted to require Exxon Mobil to produce a report on climate change. It was a seen as watershed moment showing what can occur when the biggest index funds punch their weight at the…

Intel Says It Will Share Pay Data Most Companies Keep Secret – Bloomberg

Intel Corp. says it will publicly release employee pay data, broken down by race and gender later this year. For the first time, every company with more than 100 employees is required to report the same to the Equal Employment Opportunity Commission, but the agency keeps the filings private, unless a company voluntarily discloses it….

CII Letter to the SEC on Proxy Advisors

CII members have written to the SEC to express very serious concerns about the SEC’s recent actions with regard to proxy advisory firms. We are disappointed that the SEC did not ask for public comment on its new Proxy Advisor Interpretation and Guidance before issuance. We would ask that the SEC re-consider that interpretation and…

Japan’s Foreign-Investor Screening Risks Undoing Years of Reform – WSJ

The Japanese government’s proposals to tighten screening of foreign investors may keep the country a little safer—at the cost of undoing several years of hard work in improving the investment climate. If proposals published by the Ministry of Finance this week take effect, foreign shareholders would have to inform regulators when their stake in certain…

Rise of Index ETFs Could Result in Complacent Corporate Governance | ETF Trends

Echoing (or catching up to) the findings of VEA Chair Bob Monks in his book Citizens Disunited, this reflects increasing concerns about “drone” investors. As more money flows into index-based stock mutual funds and ETFs, there may be less actively involved shareholders willing to push for changes during shareholder meetings. Index funds now account for…

Index funds invest trillions but rarely challenge management – Reuters

Index funds now control half the U.S. stock mutual fund market, giving the biggest funds enormous power to influence decisions and demand better returns at the companies in which they invest trillions of dollars. But the leading U.S. index fund firms, BlackRock Inc, Vanguard Group and State Street Corp, rarely use that clout. Instead, they…

Long-term matters: How capitalists can save the Amazon from capitalism

When foundations and wealthy individuals launched their Rapid Response-Able Fund (RRAF) in spring 2020, commentators sneered at the “save the world” motivation while others said it would distract attention from the political changes that were needed. But at $10bn (€9bn), with plans to scale quickly to $100bn, interest in corporate boardrooms snowballed. RRAF would target…