Do you own stock in a public company? As a shareholder, you have certain rights and responsibilities to provide direction to senior management and board members of companies as they chart a path for future growth and investment. Making your voice heard by companies is part of what is known as the proxy voting system.

At the commencement of this Proxy Season, it was brought to the industry’s attention that participation of retail investors in the proxy process is not where it should be, one reason may be that historically, there has been a lack of user-friendly, unbiased information about the proxy process available to those investors who have not delegated their proxy vote.

In an effort to fill that gap and to help individual investors understand their rights as shareholders of companies and the importance of their role in corporate governance, SIFMA recently launched a publicly available website with educational resources and tools known as the SIFMA Proxy Resource Center.

The site features definitions of the process and the retail investor’s role in that process, why their participation matters, and the mechanics of exactly how the process works. There is a glossary and FAQ section, set up to offer objective information to demystify the proxy process and reinforce the sites key message: individual investors do have a voice in the boardroom and they should take advantage of the proxy process to use it. The “learn more” section directs users to external sources such as the SEC for more technical resources. The site is completed with imagery, informational graphics and brief instructive 1 minute videos that make the site interactive and reinforces messaging.

Individual investors hold approximately 30 percent of the stock of large U.S. corporations—that is a significant percentage. I will admit, even I from time to time, have ignored my proxy materials, underestimating the efficacy of my participation. Their participation in proxy elections if not only essential to reach a quorum, but it provides legitimacy and transparency to the corporate elections process.

We, as shareholders are entitled and encouraged by the management of the companies we own (in part), to make our views known on topics covered on proxy ballots that may impact shareholder value, such as, executive compensation packages, issuance of stock options, the election of directors, etc. Our participation by proxy or otherwise, is critical in creating effective company policy that will help ensure the companies you have invested in remain strong, profitable and represent the values of their investors for years to come. Please explore this new resource yourself as you vote your own proxies, or contact SIFMA for more information about referring your clients to the site.

SIFMA is dedicated to continuing to amplify our consumer resource offerings and encourage our members to reach out to their staff representative if they have suggestions for consumer offerings that may be helpful to their clients.

Thomas Price
Managing Director, Operations, Technology and BCP
SIFMA