2010 Proxy Season Preview
The Proxy Season Preview - Spring 2010 will help foundations learn about important upcoming proxy votes and ensure that they vote in an informed manner on these social and environmental issues that are directly relevant to their mission and programs.
With total endowments of more than $600 billion, foundations are major institutional investors. Yet when it comes to using the proxy process to enhance both their missions and investments, most foundations passively follow management's recommendations even when they are not aligned with the foundations' own interests or values. Foundations annually grant 5% of their endowment to support their mission, but how many utilize the remaining 95% to promote that same mission? Proxy voting is an easy first step for foundations wishing to align their mission and investments.
This publication was made possible through the support of the following foundations: Educational Foundation of America, Foundation Partnership for Corporate Responsibility, Jessie Smith Noyes Foundation, and the Singing Field Foundation.
Unlocking the Power of the Proxy
To help foundations play more active roles in the corporate-governance and social-responsibility issues of publicly held companies, As You Sow and Rockefeller Philanthropy Advisors have collaborated to publish Unlocking the Power of the Proxy: How Active Foundation Proxy Voting Can Protect Endowments and Boost Philanthropic Missions.
American foundations have total endowments of more than $400 billion, much of it invested in the equities of U. S. companies, putting them on par with other large institutional investors. Yet most foundations have ignored opportunities inherent in using the proxy vote to engage management on crucial decisions and, in turn, protect the investments on which their missions depend. Sixty percent of respondents to a recent Council on Foundations survey reported that they delegate proxy voting to investment managers, who often automatically vote in accordance with management's recommendations. |
