2003: Record Year for Shareholder Advocacy

As of February 1, 862 shareholder proposals have been filed with publicly traded U.S. companies, compared with just 802 in all of 2002! The 2003 proxy season is on track to be a record year for shareholder advocacy – in terms of the number of resolutions submitted, the number of resolutions likely to come to vote and, possibly, the level of shareholder support.

Among the fastest-growing issue areas for resolutions include concerns about excessive CEO compensation, global warming, dividing the positions of CEO and chairman, and sexual orientation anti-bias policies.

The report “2003 Shareholder Proxy Season Overview: Social and Corporate Governance Resolution Trends,” notes that corporate governance resolutions rose sharply to 625 by early February 2003, compared with 529 in all of 2002. At least 237 social and environmental resolutions were filed by mid-February, up slightly from the number at this point last year.

Social Investment Forum President Timothy Smith said: “It is clear that 2003 will be remembered as the year when investors decided to stand up and be counted, using their voice and vote to call for strengthened corporate governance and solid corporate citizenship. Investors are moving from passive holders of stock to becoming active and responsible owners … understanding the leverage they have as individuals and institutions who have invested their capital and faith in these companies.”

“Climate-change risk is not just an ‘environmental’ issue; it is directly related to the bottom-line viability of several leading American industries, including oil, utilities and autos,” said CERES Executive Director Mindy Lubber. “In the wake of scandals at Enron and other corporations, investors are now wide awake to the issue of risk, and the awareness that all too many companies are not doing enough to assess, report and mitigate these dangers to shareholder value. The increasing shareholder focus on climate-change issues shows how such ‘hidden risks’ can no longer be swept under the carpet by unresponsive managers.”

For details on 2003 social/environmental and corporate governance resolutions, see the full text of the report:
[sorry this link is no longer available]. It is produced by IRRC (Investor Responsibility Research Center) and ICCR (Interfaith Center on Corporate Responsibility).