Between The Lines #9: Learn The Trending Topics From Civex

Environmentalism and Proxy Voting

How Does Environmentalism Appear In Proxy Voting?

There are many environmental factors for a company to consider in their business practices. This can include its conservation of energy, water, and other natural resources, protection of ecosystems and biodiversity, reduction of emissions, recycling efforts, wetland policies, mitigation for climate change, and the promotion of sustainability and resilience.

Recent example:

At Kroger there was a recent proposal asking for a Report on the Elimination of Hydrofluorocarbons, which many view as potent greenhouse gases. (4/22).

Say On Pay (Executive Compensation) in Proxy Voting

What Is Say On Pay?

The Say-on-Pay, or Executive Compensation, is a management proposal that asks investors to vote on the compensation of top executives of the company, including the CEO.

Recent Say On Pay Examples

Recently at Apple, CEO Tim Cook’s pay package was only approved by 64% of shareholders this year. Proxy advisors warned investors that Cook’s compensation package was 1,447 times that of the average employee. His proposed total compensation was $98.7 million and many deemed the plan too excessive. (3/22). Recent research shows that more investors rejected CEO compensation increases than ever before on proxy ballots. The more the voices are heard, the more likely the management teams will abide by these non-binding votes.

Focusing on Profits and Proxy Voting

What Is Profit Focused?

Being profit focused comes under the idea that a corporation’s board has a fiduciary duty to shareholders, meaning that the board is accountable to shareholders.

Recent Examples

Costco had a proposal asking for a Charitable Giving Report as corporate giving should ultimately enhance shareholder value. Many view the current disclosure as insufficient in allowing the Company’s Board and shareholders to evaluate the proper use of corporate assets by outside organizations. Some of the receiving causes or organizations may be deemed controversial by the shareholder (1/22).

Visit our Learn Page for more proxy voting topics and examples of how they appear on proxy ballots