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Learning, Sharing, and Teaching => Investor Alley => Topic started by: human on May 31, 2017, 08:18:18 PM

Title: Vanguard and Black Rock vote against Exxon Management
Post by: human on May 31, 2017, 08:18:18 PM

Looks like some big indexing giants voted against Exxon. They are being sued by some Attorney Generals to prepare a climate report.

Well later in the article it seems Vanguard won't reveal their vote until later. If indexing companies like this get bigger and bigger and flex their muscles we could some some decent changes (maybe?)


http://www.cnbc.com/2017/05/31/index-giant-vanguard-does-about-face-on-big-investing-position-report.html (http://www.cnbc.com/2017/05/31/index-giant-vanguard-does-about-face-on-big-investing-position-report.html)

Title: Re: Vanguard and Black Rock vote against Exxon Management
Post by: seattlecyclone on May 31, 2017, 08:31:02 PM

Vanguard owns 5% or more of most US publicly traded companies. They therefore have a lot of power at shareholder meetings if they choose to use it. That power is wielded by people who are not in any way selected by Vanguard fund shareholders like you and me. We have absolutely no formal influence over that decision. I kind of wish they opened up these decisions to fund shareholders. Have a website for fund owners to make their opinions known on any corporate issue coming up for a vote, and Vanguard would vote with their 5% the way their own shareholders want them to vote.

Title: Re: Vanguard and Black Rock vote against Exxon Management
Post by: MustacheAndaHalf on May 31, 2017, 09:06:21 PM

I'm glad the actions of Vanguard and Black Rock are making the news, to bring up the topic of shareholders and voting power.  I doubt Vanguard will poll it's shareholders for all 510 stocks (*) in Vanguard's S&P 500.

Ideally, Vanguard would collect online votes and apply those votes proportionally to all of Vanguard's holdings.  But I don't see them investing in new servers and experimental online services - that seems to go against their low cost philosophy.  Maybe another provider would be a better first adopter?


(*) Yes, 510 stocks.  That way when S&P changes the S&P 500, Vanguard doesn't embark on a dramatic buying spree that profits speculators.  Peek at Vanguard S&P 500 "portfolio" tab and you can see for yourself:
https://personal.vanguard.com/us/funds/snapshot?FundIntExt=INT&FundId=0968#tab=2