Definition
Proxy voting allows shareholders to vote on company matters without attending annual meetings. Investors delegate voting authority to a proxy (often management or an advisor). Items include board elections, executive pay, and shareholder proposals. Active proxy voting is a key tool for shareholder engagement and ESG advocacy.
Example
An ESG fund votes against management on executive compensation proposals it deems excessive relative to peer companies.
FAQ
What is Proxy Voting?
Voting on corporate matters by shareholders through a designated representative.
Why is Proxy Voting important?
Proxy Voting helps investors evaluate ESG and make more informed decisions.