Archive for February, 2010

SEC Steps Up Proxy Vote Education

The Securities and Exchange Commission announced a series of steps to educate investors about proxy voting and support greater investor participation in corporate elections.

The measures include a “Spotlight on Proxy Matters” Web site that explains the proxy voting process in plain language. Among the site’s features are a section of frequently asked questions, a sample voting instruction form and alerts about new voting rules for 2010.

“Investor participation in elections at companies they own is critical to effective corporate governance,” SEC Chairman Mary L. Schapiro said.

“The right to vote in corporate elections is a key investor right,” said Lori Schock, director of the SEC’s Office of Investor Education and Advocacy. “We designed these new resources to help investors better understand the materials they will receive in connection with annual meetings of shareholders and how to vote by proxy in corporate elections.”

Advertisements

February 24, 2010 at 9:15 am 1 comment

ProxyDemocracy Hailed as Pioneer

Moxy Vote, the new online voting platform, saluted ProxyDemocracy as one of the pioneers of the movement to empower shareholders.

Moxy Vote, designed to simplify proxy voting for individual investors, recognized “those who brought shareholder rights to the forefront of the investment scene. These folks continue to lead this charge even today.”

Moxy Vote singled out Andy Eggers, the founder of ProxyDemocracy, and Mark Latham, a member of both our board of directors and the Securities and Exchange Commission’s Investor Advisory Committee.

ProxyDemocracy brings scrutiny to the voting records of mutual fund companies, as well as telling retail investors how big institutions plan to vote at upcoming annual meetings, Moxy Vote said. In its short history, ProxyDemocracy has developed “a useful resource for investors.”

Those joining ProxyDemocracy on Moxy Vote’s roster of pioneers include Nell Minow of The Corporate Library and Jim McRitchie of CorpGov.net.

February 19, 2010 at 9:20 am Leave a comment

Mutual Funds Quiet on Bank Pay

MarketWatch suggests mutual fund companies should adopt a more pro-consumer approach to proxy voting, especially on issues such as executive pay. The column also points out the value in tracking the voting records of mutual fund firms — one of the core services offered by ProxyDemocracy.

MarketWatch cites the example of Lazard Ltd. The investment bank paid 72 percent of its annual revenue to staff in compensation and benefits in 2009, an increase from 56 percent in revenue the year before, while profit declined 95 percent, according to MarketWatch.

Large shareholders of Lazard, including Pioneer Investments and T. Rowe Price Group Inc., declined to comment on the shift, MarketWatch reported.

“Their silence illustrates how much of Wall Street operates,” MarketWatch said. “While mutual funds — and large institutional funds — nominally represent individual investors, it’s rare for them to speak out on issues.”

Russel Kinnel, director of fund research as Morningstar Inc., is quoted as saying fund firms seldom take a public stand against management over compensation. While managers do talk privately to companies about pay, Kinnel said they worry that taking the issue public would limit their access to, and information from, corporate management.

Funds should be tougher and more public when they oppose pay practices, said Nell Minow, president of the Corporate Library, which focuses on corporate governance.

“Fund managers could make [all] the difference,” Minow told MarketWatch.

One of the remedies Minow suggests is to grade funds on their proxy votes — a big part of our work at ProxyDemocracy. We examine fund company balloting in four key areas: the election of directors, compensation, corporate governance and corporate impact. We also keep score. It’s part of this organization’s mission to ensure corporations and funds are accountable to their shareowners.

Incidentally, Pioneer ranks ahead of most of its peers in ProxyDemocracy’s running tally. The firm is considered more activist on our scale than 70 percent of fund families; on the issue of compensation, Pioneer is in the top 18 percent. T. Rowe Price is in the 50th percentile in an average of all the voting categories and ranks behind two-thirds of firms in votes on executive pay.

February 17, 2010 at 9:34 am Leave a comment


Calendar

February 2010
M T W T F S S
« Jan   Mar »
1234567
891011121314
15161718192021
22232425262728

Posts by Month

Posts by Category