How Shareholder Votes Create Change
Shareholder votes are advisory. The point is to make it clear to management there’s an issue that needs attention and action. Historically, votes in the 20% to 25% range achieved that goal – it’s an out-of-touch management that would ignore a quarter of its shareholders.
Over the last few years, shareholders have been regularly returning more and more 30% and 40% votes, and crossing over into the 50%-plus range. Those levels really put management on notice their shareholders are demanding action – and in most companies, management listens. You are POWERFUL.