Institutional share voting and engagement

Research exploring the links between directors, institutional shareholders and proxy advisers

Strengthening the understanding between company directors, institutional investors and proxy advisers can lead to better decision-making, more valuable corporate disclosure and enhanced communication. This research report explores the effectiveness of the engagement between directors, institutional shareholders and proxy advisers and provides a map of the institutional share voting process in Australia.

The origins of this research report stem from the Chairman's Forum of the Australian Institute of Company Directors. The Chairman’s Forum brings together chairmen of Australia's major listed companies to promote discussion of current and emerging corporate governance issues. During these discussions, it became apparent that Australia’s chairmen were increasingly interested in improving engagement between boards and institutional investors and were keen to meet with the actual 'decision-makers' in the share voting process. In addition, chairmen wanted to better understand the role and influence of key intermediaries, including proxy advisers.

In light of these discussions we commissioned Mercer to undertake independent research to explore these themes in more detail. We are now pleased to present the outcomes of the research.

View our media release here.

You can download the full report here.