FollowVanguard Group Inc to disclose voting details on governance during their annual shareholder meetings, it is a move that is likely to increase pressure on several top companies.
The group is currently managing assets that amounts to $3 trillion, and is taking steps in changing corporate governance due to pressure from activist investors on top shareholders in taking a bit more vocal role. This basically follows the BlackRock Inc’s lead, the largest asset manager in the world, which last year ramped up their procedures in publishing such reports.
During a Reuters telephone interview, Glenn Booraem, a Vanguard Fund Controller, stated that the company have said that long time engagement is very important to them, and they aim to provide additional context around it. He also stated that a description will be provided on their website regarding details on the reasoning behind recent cases which raised concerns regarding board actions, negative votes on executive pay plans, added with other changes that occurred.
Similar to BlackRock’s report, Vanguard did not mention any specific companies. Booraem added that the main goal is really not to put pressure companies, but show their current advocates to investors.
Jonathan Macey, a professor from Yale Law School, stated that the decision of Vanguard Group Inc to disclose voting details is similar to a teacher sending a direct message by simply saying to their students that they know who they are.
