More Shareholders On BlackRock Now Have More Voting Rights
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BlackRock has announced the expansion of the number of clients that are eligible to have voting rights at the firm’s annual meetings. The world’s largest asset manager said it will be expanding the numbers and give them rights to contribute to every decision, including climate strategy and executive pay.
Last year, the asset manager announced the “Voting Choice”, which could reshape corporate elections by allowing shareholders to participate more in the asset manager’s decision-making process. It will also lessen the political criticisms BlackRock has been facing from U.S. conservatives and liberals alike.
BlackRock To Enable More Voting Choice
At the end of September, BlackRock stated that clients with about $1.8 trillion in equity index assets the company manages were eligible for voting choices. But now, those with about $452 billion are also having the same rights.
The asset manager reiterated that its main goal is to include individual investors and allow them to have access to voting choices if they so desire. “If widely adopted, it can enhance corporate governance by injecting important new voices into shareholder democracy,” Chief Executive Officer of BlackRock, Larry Frank, said.
Other Asset Managers Expand Voting Choice
BlackRock is not the only major asset manager that has tried giving ordinary shareholders more voice in the company’s affairs.
In October, Charles Schwab Corp’s asset management arm stated that shareholders of certain funds would be asked about their voting preferences. Just yesterday, BlackRock’s direct competitor Vanguard Group said it would be seeking client feedback to find out how investors in different equity funds could vote directly.
Vanguard added that its clients have different perspectives, and it wants to allow them to have a voting voice within the organization as much as possible.
In the BlackRock program, participants can dictate how their shares are voted during corporate annual meetings. Also, they can choose to leave voting choices with the stewardship team of the asset manager. The clients can also decide to take advice from proxy adviser Glass Lewis and Institutional Shareholder Services, according to BlackRock’s updated program. The asset manager also hinted that it will offer more voting options for more investment strategies.
