Votes in favor of shareholder resolutions in the double digits are very successful in focusing management and investor attention on issues.
The SEC’s rules recognize this and give small shareholders a voice by requiring a fairly low threshold of support for a proposal to be resubmitted a second and third year. A resolution must get at least 3% of the vote in its first year; 6% of the vote in its second year; and 10% in its third year, andevery year thereafter, to be eligible to remain on the ballot. This gives shareholder advocates the opportunity to mount multi-year education campaigns on proposals before a company.
Several hundred shareholder resolutions will be coming up for a vote by stockholders this year. The following proxy exempt solicitations and proxy memos lay out the arguments for why you should vote in favor: