Retail investor participation in voting and attendance at annual frequent conferences (AGMs) shot up in 2022, based mostly on Interactive Investor (II).
The platform reported a 30% bounce inside the full number of votes processed by retail consumers to 210,801 in 2022, up from 162,673 the sooner 12 months.
The proportion of votes used dropped to 7.8% from 13.6% in 2021, however, although this represents an enchancment on pre-pandemic ranges.
II moreover witnessed an uptick inside the number of accounts requesting illustration at AGMs, albeit from a extremely low base, with 720 separate accounts requesting letters of illustration at AGMs in 2022, double the 359 despatched in 2021.
Richard Wilson (pictured), II chief govt, talked about: “Personal consumers can have a robust collective have an effect on over a company’s conduct and future route by their vote, should they wish to use it. And we contemplate it is our obligation to facilitate this.
“Our latest numbers are vastly encouraging and are a properly timed reminder that you just simply don’t always must reinvent the wheel to impact constructive and vital change. Typically, you merely have to remove obstacles and purple tape. Everyone knows there could also be far more to do,” he added.
“Nor are we complacent. Nevertheless our data must be meals for thought for the enterprise. We shouldn’t let UK PLC off the hook each, shareholder communications must be significantly better tailored to private consumers, who’ve been disenfranchised by legalese for too prolonged.”
The platform has beforehand often known as on the UK’s financial authorities to assist retail consumers by introducing steering very similar to the US Securities and Commerce Price’s ‘plain English handbook’ to boost engagement.
Votes processed by retail consumers
Yr Number of votes processed Share of votes used 2019 43,753 6% 2020 78,986 8.1% 2021 162,673 13.6% 2022 210,801 7.8%
Provide: Interactive Investor
The popular votes
The company that triggered the easiest diploma of engagement from retail voters on II’s platform was Lloyds Monetary establishment – unsurprising because it’s essentially the most widely-owned UK stock. Its AGM in Would possibly had basically essentially the most private shareholder votes solid of any meeting in 2022. This was adopted by BP and Aviva’s AGMs within the an identical month.
II’s head of equity method, Lee Wild, talked about: “There have been a great deal of totally different high-profile conferences in 2022 that gave consumers a chance to let companies know what they thought of them. On occasions, one side would possibly want wished they hadn’t bothered.
“Aviva used its annual get-together to wave by a £4.75bn return of capital, however it was the behaviour of some shareholders that grabbed the headlines, and for the flawed causes. Sexist suggestions aimed towards Amanda Blanc, Aviva’s first female CEO, proved there could also be nonetheless work to be carried out eradicating behaviour additional changing into to the Darkish Ages. A topic very plenty of the stylish age continued to set off chaos at AGMs held by the primary oil companies.
“After police eradicated native climate protestors from Shell’s meeting in Would possibly, it emerged that 20% of shareholders voted in the direction of the company’s vitality transition method. The an identical amount voted in favour of a selected determination forcing Shell to do additional to cut greenhouse gas emissions. A fifth of votes going in the direction of the majority demonstrates the flexibility that shareholders wield, although, on this event, the keenness for change was significantly lower than the sooner 12 months. It was the identical story at BP.”
See moreover: Eradicating obstacles observed 48% rise in shareholder ballots solid on Interactive Investor