This research comprised:
- 34,000 global shareholder meetings over the five-year period
- Over 266,000 individual resolutions proposed
- Company performance the year following each shareholder meeting
In 45% of the cases, AllianceBernstein had fully supported all resolutions made by the companies in their portfolio. They found that these companies had outperformed, at nearly double the rate of those where they had voted against three or more resolutions.
A piece of interesting research that quantifies the correlation of active proxy voting based on strong governance expectations and higher stock returns. For EQ this supports our belief in the importance of building and maintaining strong relationships between issuers and investors, responding to any concerns, and both parties utilising and embedding the comply and explain approach to corporate governance that is the fundamental ethos of UK corporate governance. For AllianceBernstein they have demonstrated the benefit this can have on generating shareholder value.
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