2024 Proxy Voting Highlights Split Between Main Street and Wall Street in Corporate Elections, New Broadridge ProxyPulse™ Report Finds

Rhea-AI Summary

Broadridge Financial Solutions' ProxyPulse™ report reveals significant trends in corporate elections for 2024. Individual investor ownership reached a decade-high at 31.7% of shares held in street name, with voting participation increasing to 29.8%. Individuals showed stronger support for board recommendations compared to institutional investors.

The report highlights increased shareholder support for director and say-on-pay proposals, with directors receiving 91% approval and say-on-pay garnering 88% support. Notably, only 481 directors failed to win majority support, the lowest in four years.

However, environmental and social proposals saw declining support, averaging 21.2%, the lowest in eight years. A clear divergence in voting patterns emerged, with individuals supporting these proposals at 14.8% compared to institutions at 22.4%.

Positive

• Individual investor ownership reached a 10-year high at 31.7% of shares held in street name
• Individual investor voting participation increased to 29.8%, the highest in nine years
• Director proposals received 91% average approval
• Say-on-pay proposals received 88% average support, a four-year high
• Only 481 directors failed to win majority support, the lowest in four years

Negative

• Support for environmental and social proposals declined to 21.2%, the lowest level in eight years
• Divergence in voting patterns between individual and institutional investors on environmental and social proposals

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Individual investor ownership and voting is rising

NEW YORK, Sept. 26, 2024 /PRNewswire/ -- Individual investor ownership was at its highest level in a decade according to the ProxyPulse™ report released today by global Fintech leader, Broadridge Financial Solutions, Inc. (NYSE:BR). Individual investors owned 31.7% of shares held beneficially in street name, up from 31.5% for the prior season. More individual investors are exercising their right to vote: their voting participation ticked up to 29.8% of the shares they hold from 29.6% last year, the highest in nine years. Individuals, as a group, were more supportive of board recommendations than were institutional investors.

"There continues to be a marked difference in how individual and institutional shareholders vote on environmental and social proposals," said Chuck Callan, Broadridge SVP Regulatory Affairs and co-author of the report. "As a result, many fund companies and institutional asset managers now provide their investors with a vote or a say on how matters at portfolio companies are voted."

Director and Say-on-pay Support Increased

Shareholder support for corporate directors and say-on-pay proposals increased, as company market valuations improved. On average, director proposals were approved by 91% of the vote while say-on-pay received 88% support. Fewer directors and pay proposals failed to attain majority support this season. Only 481 directors failed to win majority support, the lowest in four years. Say-on-pay support was at a four-year high.

Environmental & Social Support Continues to Decline

Backing for environmental & social proposals declined. While more proposals were on the ballot (483) in meetings in the first 6 months of this year, average support fell to 21.2%, the lowest level in eight years, down from 25.5% last year.  There continues to be a divergence in how individuals and institutional investors voted on proposals of this type.  Support by individuals was 14.8% of their voted shares, on average, while support by institutions was higher at 22.4% of their voted shares.

The Broadridge ProxyPulse™ report highlights voting trends over the past five proxy seasons. Download the full report.

About ProxyPulse 

Broadridge's ProxyPulse™ report provides an in-depth analysis of the 2024 spring proxy season, examining trends in shareholder meetings, individual and institutional investor voting actions and corporate governance reforms. It highlights key regulatory developments shaping the season's outcomes, and what to expect in 2025.

ProxyPulse™ is based on Broadridge's processing of shares held in street name at the 1,000+ broker-dealers and custodian banks that we service, over 750 million equity positions.

About Broadridge
Broadridge Financial Solutions (NYSE: BR), is a global technology leader with the trusted expertise and transformative technology to help clients and the financial services industry operate, innovate, and grow. We power investing, governance, and communications for our clients – driving operational resiliency, elevating business performance, and transforming investor experiences. 

Our technology and operations platforms underpin the daily trading of more than $10 trillion of securities globally. A certified Great Place to Work®, Broadridge is part of the S&P 500® Index, employing over 14,000 associates in 21 countries. For more information about us, please visit www.broadridge.com. 

Broadridge Contacts:
Investors: 
Edings Thibault
Head of Investor Relations, Broadridge
broadridgeir@broadridge.com 

Media:
Gregg Rosenberg
Global Head of Corporate Communications
Gregg.Rosenberg@broadridge.com 

 

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SOURCE Broadridge Financial Solutions, Inc.

FAQ

What percentage of shares did individual investors own in 2024 according to Broadridge's ProxyPulse report?

According to the ProxyPulse report by Broadridge (NYSE:BR), individual investors owned 31.7% of shares held beneficially in street name in 2024, the highest level in a decade.

How did support for environmental and social proposals change in 2024?

Support for environmental and social proposals declined in 2024, with average support falling to 21.2%, the lowest level in eight years, down from 25.5% the previous year.

What was the average approval rate for director proposals in 2024 according to Broadridge's report?

According to Broadridge's (NYSE:BR) ProxyPulse report, director proposals were approved by an average of 91% of the vote in 2024.

How did individual and institutional investors differ in their support for environmental and social proposals?

The report by Broadridge (NYSE:BR) shows that individual investors supported environmental and social proposals with 14.8% of their voted shares on average, while institutional investors supported these proposals with 22.4% of their voted shares.