BETA stewardship FOR SHAREHOLDERS

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Beta Steward: The Shareholder Commons’ Voting Guide

Pension funds and other asset owners must preserve their capital and earn sufficient return to satisfy obligations to retirees and other liabilities. Asset managers must help investors optimize their returns based on an acceptable level of risk. For owners and managers alike, returns are the result of three variables: 

  1. The return of the market overall to the classes of securities within a portfolio (beta);
  2. The performance of the portfolio above or below beta based on the securities selected to be in the portfolio (alpha); and
  3. Asset management costs and fees.

Historically, asset owners and managers have focused on the second and third components and accepted beta as a factor over which they did not have control and for which they had no responsibility. The increasing recognition that the social and environmental systems upon which the global economy depends are at risk from corporate behavior demonstrates the deep flaw in that thinking—corporate behavior with respect to social and environmental systems affects the economy as a whole, and overall economic performance is a critical determinant of beta.  

Moreover, shareholder activism in other areas demonstrates that shareholders can indeed affect behavior across corporations through voting and engagement. Thus, if shareholders can analyze the potential effects of their votes on corporate behaviors that affect the economy, they can—for the price of exercising a vote—make reasonable attempts to improve a critical facet of return. 

 

PROXY VOTING POLICIES

 

 

  • Click here to see our model proxy voting policies

  • Click here to see our case for why proxy voting policies should enable voting decisions that prioritize systems over alpha

Shareholder Resolutions & Votes 

 

TSC is supporting multiple proponents in filing shareholder resolutions with a beta stewardship lens. We are also monitoring other key votes on company proxies around the world that provide an opportunity for investors to vote according to a beta stewardship approach. We will be updating the following list regularly, so please check back often. You can also subscribe to receive periodic updates on critical developments throughout the proxy voting season.

 

3M (MMM) 

Proposal to Transition to a Public Benefit Corporation 

Company No-Action Relief Letter 

TSC Response to No-Action Relief Letter 

Alphabet (GOOGL) 

Proposal to Transition to a Public Benefit Corporation 

Company No-Action Relief Letter 

TSC Response to No-Action Relief Letter

Amazon (AMZN) 

Proposal to Transition to a Public Benefit Corporation 

Company No-Action Relief Letter 

Bank of America (BAC) 

Proxy Statement – Proposal to Transition to a Public Benefit Corporation

BlackRock (BLK) 

Proposal to Transition to a Public Benefit Corporation 

Caterpillar (CAT) 

Proposal to Transition to a Public Benefit Corporation 

Chevron (CHX) 

Proposal to Transition to a Public Benefit Corporation

Citigroup (C) 

Proposal to Transition to a Public Benefit Corporation

CVS Health (CVS) 

Proposal to Disclose External Public Health Costs 

Company No-Action Relief Letter 

Facebook (FB) 

Proposal to Transition to a Public Benefit Corporation

Goldman Sachs (GS) 

Proposal to Disclose External Corporate Governance Costs 

Company No-Action Relief Letter 

TSC Response to No-Action Relief Letter 

Proposal to Transition to a Public Benefit Corporation

JPMorgan Chase (JPM) 

Proposal to Disclose External Corporate Governance Costs 

Company No-Action Relief Letter 

TSC Response to No-Action Relief Letter 

Marriott International (MAR) 

Proposal to Disclose External Inequality Costs 

Company No-Action Relief Letter

TSC Response to No-Action Relief Letter

McDonald’s (MCD) 

Proposal to Disclose External Antimicrobial Resistance Costs 

PepsiCo (PEP) 

Proposal to Disclose External Public Health Costs 

Company No-Action Relief Letter 

TSC Response to No-Action Relief Letter 

S&P Global (SPGI) 

Proposal to Transition to a Public Benefit Corporation 

Salesforce (CRM) 

Proposal to Transition to a Public Benefit Corporation 

State Street (STT) 

Proposal to Disclose Market Materiality of Voting Policies 

Company No-Action Relief Letter 

TSC Response to No-Action Relief Letter 

Tractor Supply (TSCO) 

Proposal to Transition to a Public Benefit Corporation 

Company No-Action Relief Letter 

TSC Response to No-Action Relief Letter 

UPS (UPS) 

Proposal to Transition to a Public Benefit Corporation 

Wells Fargo (WFC)

Proposal to Transition to a Public Benefit Corporation 

Yelp (YELP) 

Proposal to Transition to a Public Benefit Corporation 

YUM! Brands (YUM) 

Proposal to Disclose External Antimicrobial Resistance Costs 

Agreement to Withdraw Proposal

Press Release on Withdrawal Agreement

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