In its most basic description, voting by proxy is when shareholders get a chance to tell the companies in which they are invested which proposals they are for and against, and what they think of board nominees.
The proxy voting season usually runs from April through June and while most shareholders are not voting directly, it is important to understand corporate priorities to ensure alignment with personal values.
The bulk of shareholders with common shares depend on a third-party proxy vote administrator to vote in their stead. Shareholders who don’t give their opinions and preferences to the board of directors are considered abstentions. Nearly 90 percent of U.S. individual investors do not use their proxy vote!
Some of the ways shareholders can use their votes include: demanding data about diversity, equity, and inclusion efforts, as well as other ESG topics; executive pay; tying performance bonuses to specific metrics; preventing hostile takeovers.
Example of a Proxy Ballot Overview
There’s a good chance you own Alphabet (Google) stock directly, in your mutual fund, ETF, or retirement account.
Did you know that shareholders filed SIXTEEN resolutions on many topics including Privacy concerns, Human Rights, Diversity, and Concealment Clauses? The picture below shows the upcoming votes and how management suggests people vote. Wouldn’t it be great if you had a way to easily understand the vote at stake, and to then share your voice on these items?
How does Civex help?
An app that’s tailored to personal passion points and current investments, Civex aims to connect and empower people to use their proxy vote.
- Education
- Learn what votes are coming up at the companies you’re invested in and how you can vote by proxy.
- Understand how to turn your opinions into action.
- Community
- Create your own circle within the larger community — connect with people who share similar interests and priorities.
- Turn thought into action — learn how to make your voice heard and make an impact.
