Proxy access has been an issue for the past several years. As was reported in The Wall Street Journal, public pension funds led by New York City’s comptroller, who manages $170 billion dollars, has driven this initiative. Supporting this effort are large asset managers such as TIAA, that urged its top 100 US holdings to act on proxy-access. Two-thirds adopted the rule.
According to ISS, over 400 U.S. companies have acquiesced. ISS stated that 58% of S&P 500 companies are on board.
Yet, several large companies, such as IBM and Charles Schwab are resisting – Will they be able to continue to do so?
As New York City’s comptroller is quoted – “virtually every company will have to decide whether to give shareholders a voice in director elections or risk investors’ ire.”
From Your Friends at Laurel Hill
Ref: The Wall Street Journal | Tuesday, April 18, 2017