Posted by Subodh Mishra, Institutional Shareholder Services, Inc., on Monday, July 4, 2022 Editor's Note: Subodh Mishra is Global Head of Communications at Institutional Shareholder Services, Inc. This post is based on an ISS memorandum by Paul Hodgson, Senior Editor at ISS Corporate Solutions.
Shareholder resolutions filed in the 2022 proxy season reflect continuing investor concern over lobbying activities and whether they are consistent with a company’s public positions and aligned with shareholder interests. However, the passage of only two such resolutions indicates that the majority of shareholders are satisfied with company efforts to address these concerns.
In this series of snapshots, ISS Corporate Solutions examines the key corporate issues raised by this season’s shareholder resolutions. This time, we look at resolutions on lobbying, including activities focused on climate. Voting results are based on filings by companies up to June 13, 2022.
More shareholder resolutions were filed during the 2022 proxy season than the previous year, with 586 environmental and social shareholder proposals submitted at U.S. companies so far, compared to 561 in 2021. Though many have since been withdrawn, many have been or will be voted on. According to data from ISS Corporate Solutions, 569 shareholder resolutions on ESG issues have either been voted on or are pending in annual meetings through November this year.
Some 31 proposals on lobbying were filed during this year’s proxy season, including three focused on climate, 27 of which have been voted on. Of those, just two received majority support, at Netflix and The Travelers Companies, Inc. A proposal at Gilead Sciences received 49.9% support. Overall, average support was at 31.8%. While many shareholders remain concerned about companies’ lobbying activities, both direct and indirect, the failure rate of such proposals indicates that the majority of investors are convinced that additional disclosures made by companies that have long been targeted by such proposals mark a sufficient improvement over past practices.
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