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Proxy Engagement Research From Global Investors

The Proof Is In The Proxy: Proxy Engagement Research Findings From Global Investors, AllianceBernstein

Tuesday, 21 May 2024

In March 2024, global investors AllianceBernstein, published the findings of their five-year research work, analysing their own voting records from 2019 to 2022, to find that shareholder returns were stronger in companies where they had fully supported all resolutions at shareholder meetings.  

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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If you would like any further information on how EQ Proxy Solicitation Services can support your engagement with shareholders and provide corporate governance advice, visit our website.

Proxy Solicitation And Shareholder Engagement