Voting turnout by investors at European companies’ annual general meetings has risen above 50 percent for the first time, as shareholders increasingly turn out to make their voices heard, according to figures from adviser Manifest. The Wall Street Journal said this showed the average turnout at companies in Western Europe’s main eight blue-chip indexes hit 51 percent in the year to the end of July — in 2006-07 the figure was just 40 percent. The agency’s Europe-wide records go back only three years. However, evidence from individual countries confirms the rising trend. Its figures for the U.K. reach back as far as 1996, and this year’s turnout for companies on the FTSE 100, at 68 percent was also the highest it has on record. Sarah Wilson, chief executive of Manifest, agreed that the financial crisis had played a role but said there had already been a pre-crisis broad trend toward increasing voter turnout. Factors driving that included disclosure of share-voting records being made compulsory for U.S. mutual funds a few years ago and for certain French funds last year. This discourages them from staying away, as they must explain that to investors. She also warned that compulsory voting was not always informed voting. “There is a risk that if governments force or strongly encourage voting, investors will simply vote blindly — either automatically in favor of management, or in line with the recommendation of a particular proxy adviser,” she said.
Report: European Shareholders Up Activity
It showed the average turnout at companies in Western Europe’s main eight blue-chip indexes hit 51 percent in the year to the end of July — in 2006-07 the figure was just 40 percent.
September 7, 2009