CHECK OUT THE SEC EFFORT TO BOOST INDIVIDUAL INVESTOR PROXY VOTING!
The Securities and Exchange Commission (SEC) is taking action to promote greater investor participation in corporate elections. The Commission is hoping to “get the vote out” from individual or mom and pop investors.
As the SEC notes, investor participation in the elections of companies they own is critical to effective corporate governance, which establishes the accountability of directors who are elected by shareholders, and of management team who are elected by the directors.
Unfortunately retail investors have seen their participation in corporate governance through proxy voting drop significantly over the past few years. Less than 20% of individual shareholders (according to Broadridge June 30, 2009 statistics) vote in annual elections. Those investors that receive e-proxy notification that information is available over the Internet have seen their voting participation fall even further (to about 5 %).
For more information, go to http://www.sec.gov/news/press/2010/2010-23.htm.
Tags: SEC, democracy, individual, investors, proxy, shareholders, voting
Comment
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Comment by Frank Hay on March 24, 2010 at 4:21pm -
Individual investors probably feel that there is not much they can do to influence directors, and thus do nothing. What would happen if enough shareholders started voting for all shareholder proposals and against all proposals submitted by the directors? They might also withold their votes for any directors nominated by the board as a way to show their dissatisfaction with what is going on. In addition, email messages to the board objection to exhorbitant compensation packages might have some impact if enough shareholders do it. We must try whatever we can if we hope to get anything changed.
Frank Hay: fhay26@knology.net
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