Recently, BlackRock released this 32-page investment stewardship report about how it voted globally for the year ended on June 30th. The voting stats are on page 29 in the first appendix. Here are eight things to know:
- BIS voted on more than 154,000 management and shareholder proposals globally at more than 12,000 companies in 56 voting markets under the Benchmark Policies.
- The substantial majority of proposals were on ordinary matters, including director elections and board-related items.
- Consistent with the past proxy year, BIS supported management on approximately 88% of total proposals voted, reflecting their continued assessment that boards and management teams generally acted in alignment with shareholders’ long-term financial interests.
- BIS supported approximately 91% of the nearly 68,000 proposals categorized as director elections they voted on globally.
- Director independence issues remained the primary reason they did not support these proposals globally.
- Shareholder proposals represented less than 1% of total proposals BIS voted on, with BIS supporting approximately 9% globally. Investors – including BlackRock – most frequently supported governance-related proposals, particularly those strengthening minority shareholder rights, while proposals concerning climate and natural capital and company impacts on people declined for a second consecutive year and continued to receive low median market support.
- BlackRock Voting Choice – the industry’s largest pass-through voting program – is available to client assets representing $3.96 trillion of BlackRock’s $8.79 trillion total index equity AUM, with clients representing approximately $923 billion in index equity AUM exercising this option.
- The vast majority of BlackRock’s clients delegate voting authority to BIS under the Benchmark Policies, entrusting them to act on their behalf as their fiduciary. At the same time, BlackRock continues to expand choice in stewardship, including through BlackRock Voting Choice, which provides eligible clients with more opportunities to participate in the proxy voting process where legally and operationally viable.
Authored by
Broc Romanek