Don’t neglect proxy voting
It can seem like those of us who own only a few dozen (or even a few hundred) shares of a company are powerless to influence it, but that’s not the case. Even a single share of common stock makes you a part-owner in a real business, after all, and most shareholders of most stocks get to cast proxy votes each year, often in the spring.
If you receive voting materials from a company in which you’re invested, take some time to read through them. Reviewing annual reports, proxy statements and other literature will help keep you better informed about your company and its prospects, as well as warn you of any possible disagreements among company management and large shareholders.
The proxy form that’s mailed out to shareholders is essentially an absentee ballot, allowing you to mail in your vote — or cast it online. (If you attend the company’s annual meeting, you can vote in person.) Along with the form, you should receive a small booklet that explains the issues up for a vote in more detail. It will usually describe the company’s position on the issues and often explains the opposing position, as well. While proxy forms usually include recommendations from company management as to how they would like you to vote your shares, you have no obligation to follow these recommendations. (You can vote for or against board members, too.)
Over the years, many companies have faced proposals from shareholders concerning environmental, social and other matters, such as demands for annual climate impact reports, or more fair compensation for women and minorities. Such proposals frequently fail to get a majority of votes, but many have succeeded even with lesser numbers, such as when Mcdonald’s was persuaded to switch from foam containers to more environmentally friendly ones with just 20% support for the demand.
You can learn much more about proxy voting and initiatives to vote for or against proposals at sites such as Asyousow. org, Proxypreview.org, Ceres.org, Greenamerica.org and Corpgov.net. Cast your votes, and let your voice be heard.