Executive compensation is a major issue for many boards, but in terms of the raw number of shareholder proposals
a company receives, it is not the greatest concern.
It shows a fundamental shift in the types of resolutions submitted to a vote by shareholders, the sophistication developed by activist investors in the use of technology and social media to agitate for corporate change outside of the AGM, and the increased propensity of senior management to implement precatory shareholder proposals
on corporate governance that have received the support of a majority of voting shares.
Investors continue to push for independent board chairs, submitting a record number of shareholder proposals
on the topic, though average support for these proposals declined this year to 31 percent from 36 percent in 2012.
The fourth option, and the focus of this paper, is for owners to file shareholder proposals
to the Board to communicate their interests in changing corporate practices or by-laws.
seeking to allow investors to have a say on the CEO's pay and to restrict retirement benefits for senior executives were rejected.
Carol Bowie, IRRC's director of corporate governance research, says that companies have taken concrete, responsive action on 67 of the 167 shareholder proposals
(about 40 percent) that received majority support in 2003.
to adopt annual elections received a majority vote of support in 2002 and 2003.
Investors Research Responsibility Center (IRRC), a non-profit organization which tracks corporate governance issues, notes that shareholder proposals
that came to vote in the firms it tracks grew from 55 in 1986 to 99 in 1987, 186 in 1988 and 254 in 1989.
The shareholders voted to support each of the three proposals submitted by AIG, and, as the AIG Board recommended, shareholders withheld support for the three shareholder proposals
submitted for consideration.
Ernst & Young LLP releases 2013 review of environmental and social shareholder proposals
NYSE:TXI) Board of Directors and pass three corporate governance shareholder proposals
at the company's annual meeting scheduled for Oct.
at which time the shareholder proposals
will be considered and acted upon.