Proxy access allows shareholders who meet certain ownership thresholds to nominate directors to the boards of their investee companies. Simply put, it allows their nominees to appear next to management’s nominees on the same ballot. It is a two-step process called proxy access by private ordering. Over the past two proxy seasons, there has been a bigger focus on proxy access as some shareholders have used it to drive shareholder engagement with the board.
PwC’s 2016 Annual Corporate Directors Survey
Many investors believe that proxy access is an essential shareholder right, one that allows them the ability to directly influence board composition. And more S&P 500 companies are adopting proxy access bylaws. Still, about half of directors are concerned about proxy access.
Fifty companies reach proxy access bylaw agreements
This edition of our biweekly newsletter reports that 50 companies have reached proxy access bylaw agreements with the Boardroom Accountability Project.