Posts tagged with: Proxy Monitor

The Manhattan Institute Centers’s “Proxy Monitor Season Wrap-Up” is hot off the press, and the findings presented by author James R. Copland, are remarkable.

Since 2011, MIC has monitored shareholder activism, which it describes as efforts “in which investors attempt to influence corporate management through the shareholder-proposal process.” This year’s wrap-up includes MIC-researched data from corporations’ annual meetings held by the end of June 2015. By that time, “216 of the 250 largest U.S. companies by revenues” had completed their meetings, which enable long-term shareholders owning $2,000 of equity securities to introduce proxy resolutions.

Among these proxy activists are As You Sow, the Nathan Cummings Foundation and the Interfaith Center on Corporate Responsibility – groups with religious backgrounds and decidedly leftist ideological agendas – and a host of likeminded crusaders of progressive causes:

Among social investors, only As You Sow introduced more than five proposals in 2015 (seven). Many other socially oriented investors sponsored multiple proposals, however: social-investing platforms Arjuna Capital (three), Domini Social Investments (three), Green Century Capital Management (three), Investor Voice (five), Northstar Asset Management (two), Trillium Asset Management (four), and Walden Asset Management (four); religious investors Congregation of Sisters of St. Agnes (two), Sisters of Mercy (five), Province of St. Joseph of the Capuchin Order (two), Sisters of St. Dominic (two), Sisters of St. Francis (three), and the Unitarian Universalist Association of Congregations (two); the public-policy group National Center for Public Policy Research (two); and the Nathan Cummings (two) and Park (three) charitable foundations.

According to Copland’s report, religious shareholder activists were responsible for 29 percent of all resolutions submitted to the 216 Fortune 250 companies. What type of proposals did the nuns, clergy and other religious submit? (more…)

Shareholders’ boardroom clout increases” touts the website at the Interfaith Council on Corporate Responsibility The linked article takes readers to an August 20 essay by Sara Murphy at The Motley Fool in which the author asserts: “New research out today from the Sustainable Investments Institute, or Si2, shows that investors are filing more environmentally and socially themed shareholder resolutions now than ever before, and those resolutions are getting more support during proxy voting than they ever have.”

Not so fast, Ms. Murphy. This week another story unfolded, courtesy of The Manhattan Institute Center for Legal Policy. MI’s third annual Proxy Monitor, authored by James R. Copland and Margaret M. O’Keefe, counters the ICCR and Murphy narrative significantly. It appears the ICCR folk were distracted after reading the reports first finding:

The number of shareholder proposals introduced is up. The average Fortune 250 company faced 1.26 shareholder proposals on its 2013 proxy statement, up slightly from 1.22 proposals per company in 2012. This trend also holds when considering the 104 proposals excluded from proxy ballots after companies received a letter from the Securities and Exchange Commission assuring them that the agency would take no action against the company due to the proposal’s procedural or substantive defects.

So distracted by the presumed good news, in fact, they neglected to read the subsequent findings:

Support for shareholder proposals is down. Only 7 percent of shareholder proposals received the backing of a majority of shareholders in 2013, down from 9 percent in 2012. A smaller percentage of shareholder proposals passed in 2013 than in any other year in the 2006–13 period. Among the 20 proposals receiving majority support, 13 involved just two issues: whether to elect all corporate directors annually and whether each director should be required to receive a majority of votes cast to be elected.

And this: (more…)