Tag: Shareholder Proposals

E+S Proposals Soar as Covid-19 Upends Proxy Season

The coronavirus pandemic has turned investor dialogue upside down ascompanies go dark on negotiations and investors reset priorities at the start of an unprecedented proxy season.

Shareholders have filed a host of proposals for the 2020 proxy season, once again largely focusing on environmental and social issues. Indeed, issues such as climate change, gender pay equity and political spending are cropping up in proxies, although sources say investors may be hesitant to vote for proposals as companies focus efforts on navigating the Covid-19 pandemic.

According to a recent report from Proxy Impact and As You Sow, proponents filed 429 proposals on ESG issues for the 2020 proxy season as of February 21, up from 366 last year. Most of the proposals (53%) involved social issues; 31%, environmental issues; and 16%, governance or other issues.

However, it is early in the season. Only 96 proposals appeared in proxy statements at 59 Russell 3000 companies as of April 3, according to data from public company intelligence provider MyLogIQ. Of those, 24 have gone to a vote and four have passed.

‘Chaos Move’: Special Meetings Gain Support

Investors appear to be narrowing their scope when it comes to shareholder resolutions involving the right to call special meetings, experts say. Fewer proposals have been introduced this year, but those that have gone to a vote have seen a higher rate of support, suggesting that investors are targeting companies where they think they may be able to win.

One such company is Occidental Petroleum, which is now facing a lawsuit filed by Carl Icahn. The activist investor is demanding a books and records inspection over the energy giant’s deal to buy Anadarko Petroleum, which he opposes. The lawsuit suggests Icahn plans to call a special meeting to replace directors. A shareholder proposal to lower the ownership threshold to call a special meeting passed at Occidental’s annual meeting last month.

Similar resolutions on calling a special meeting of investors have passed at several companies this proxy season, Icahn or no.