Problem Statements:
The Case for Change
Sponsored by:
a. Why shareholder governance matters
Shareholder governance is no longer a peripheral discipline. It is a core component of both investment strategy and corporate accountability. Our previous research showed that 63% of investors would incorporate shareholder engagement into their investment decision making if reliable metrics existed.
63% of investors would incorporate shareholder engagement into their investment management decisions
ESG continues to dominate this trend. Around 80% of issuers and 71% of investors cited ESG as a central driver of their governance strategy.
As one large super fund put it, “We cannot meet our stewardship obligations without timely, accurate voting information. Governance is a live part of portfolio management.”
Issuers recognise the shift. Most identify governance expectations, from regulatory bodies, shareholders, ESG ratings providers and asset owners, as a primary reason they must engage earlier and more effectively with investors.
b. The growing cost of proxy voting
Proxy voting is also becoming more expensive. 26% of investors saw proxy voting costs rise by more than 20% between 2023 and 2024, with several noting that this is being amplified by rapid growth in event volumes.
Proxy Voting costs change (2023/2024)
Much of this cost escalation stems from manual remediation, such as chasing missing data, correcting errors and clarifying announcements that arrive late or incomplete. Prior to digitisation, these inefficiencies were simply “the cost of operating in Australia”, according to one global intermediary. “You threw bodies at the problem during AGM season. It was the only way to cope.”
