The Role of Long-Term Shareholder Voice

From Benjamin Colton, Global Head of Asset Stewardship, and Ryan Nowicki, Assistant Vice President of Asset Stewardship at State Street Global Advisors. As a long-term investor, representing quasi-permanent capital for companies held in our clients’ index portfolios, we are uniquely positioned and incentivized to encourage portfolio companies to consider long-term risks and opportunities in order to maximize…

Preparing for the 2023 Proxy Season in the Era of Universal Proxy

The best preparation for any proxy contest occurs in peacetime, and companies should continue to build relationships and credibility with their investors in the context of their ongoing engagement meetings with investors for the benefit of all board members. Given the limited opportunities for directors to meet with investor stewardship teams during the year, companies…

Intel CEO salary: Shareholders vote against executive pay program | Fortune

Around 1.78 billion votes, making up around 54.2% of shareholders of the chip-manufacturing giant, were cast against the executive compensation, while 932 million votes were made in favor. Around 577 million votes abstained or were broker nonvotes. The vote is advisory and won’t take immediate effect, but it indicates that a growing number of stockholders…

Agenda – Pay Cuts Unlikely to be Popular with Executives

In a rare move, the embattled heavy machinery production giant General Electric bowed to investor pressure and cut a previously awarded pay package for CEO Larry Culp this month. Still, investors say they are not satisfied with the board’s attempt to address their concerns about what they view as a poorly aligned executive pay regime….

CERES: 2022 Guidance for Engaging on Climate Risk Governance and Voting on Directors

CERES has released their excellent new guidance on climate change issues. The full text is below. Highlights (Emphasis added): Companies should disclose independent board oversight of climate-related risks and opportunities, which includes monitoring by the board of each company’s science-based greenhouse gas (GHG) emission reduction targets.This board oversight should be clearly reflected in a publicly…

Agenda – Investors Share Plans for Next Proxy Season’s ESG Blitz

After a rousing engagement season this fall, investors and other governance observers are anticipating robust support for environmental, social and governance issues at next year’s annual meetings. Shareholders are focusing more keenly on environmental and social issues in engagement sessions than ever before, according to Agenda’s most recent reader survey. As investors zero in on…

EY: Top Priorities for Investors in 2021 Proxy Season

EY advises its clients that the top priorities for engagement by investors this proxy season are: Investors want to know how companies are strategizing for a low-carbon future. Getting diversity disclosures that include the workforce and the board is an investor priority. Investors want to understand how pay decisions are being made in the context…

Update from CalPERS

March 2021 CalPERS update, starting with commitments for this year: Proxy Voting & Corporate Engagements ✓  Vote all public company proxies in a manner consistent with CalPERS’ Governance & Sustainability Principles and CalPERS’ Investment Beliefs ✓  Actively engage 2,000+ unique companies annually on executive and employee compensation, corporate board diversity, climate change, investor rights, human…

State Street to insist companies disclose diversity data | Financial Times

State Street’s $3.1tn investment arm will start voting against directors of big companies that fail to disclose the racial and ethnic make-up of their boards, a move that will increase the mounting pressure on corporations to diversify their leadership.  For this year, the Boston-based asset manager is only calling on companies to report the information….