OxProx CEO Dustyn Lanz has written a column for Canadian financial newspaper Investment Executive to summarize the case for our public database of proxy voting records. Below is an excerpt. Read the full column here
“A public database of proxy voting records will benefit investors in several ways. It will:
- Strengthen shareholder democracy by fostering a more informed, active and equitable market. Proxy voting databases are typically accessible only to those who can afford to pay corporate rates, which creates a significant information asymmetry between large and small investors. By increasing access to voting information, a public database enables all market participants to make more informed investment and voting decisions, regardless of their size.
- Promote accountability by increasing access to voting information. A public database enables asset owners and beneficiaries to hold fund managers accountable for their votes, and to verify whether fund managers are voting in alignment with their stated policies and principles. Investors can track how their proxies are voted and take action if they find discrepancies or conflicts of interest.
- Support investor stewardship by facilitating collaboration among stewardship leaders. With voting records more accessible, investors can more easily identify and collaborate with like-minded shareholders on ESG issues. This ability to form coalitions enhances the power of shareholders to promote corporate policies and practices that reduce risk and drive positive change.
All the above are beneficial to investors and contribute to healthy, functioning markets more broadly.”