Liontrust engagement and voting report 2021 - Flipbook - Page 23
Liontrust’s Sustainable Investment team voting statistics 2021
Re-election of chair
Remuneration
Re-election of directors
Ratification of auditors
(110 total votes)
(117 total votes)
(113 total votes)
(110 total votes)
14
16
15%
41
12%
of eligible
meetings
36%
of eligible
meetings
103
94
The re-election of the Chair of
the Nomination Committee
The approval of the
company’s remuneration
report/compensation
35
32%
of eligible
meetings
of eligible
meetings
75
72
The re-election of one or more
company directors*
The ratification of auditors/
authorisation for the Board to fix
remuneration of external auditors
Source: Liontrust, December 2021. *Due to lengthy terms of office, bundled director elections or lack of independence.
Shareholder proposals
Liontrust’s policy regarding shareholder resolutions acknowledges
that they may encompass a wide range of issues. We assess
shareholder proposals in light of good practice, their materiality
and relevance to our approach and investment concerns. We will
consider supporting non-binding shareholder resolutions when the
broad purpose of the proposal is aligned with our policy views
or addresses potential improvements. For binding resolutions, a
proposal must be proportionate, in shareholder interests, focused
on improving the reputation and quality of a company’s operations
and practices, and aligned with our policy objectives and best
practice. When a company receives a shareholder proposal
related to an environmental and/or social issue, our assessment
will consider the robustness of its existing disclosures and our
understanding of its management of the issues. In 2021, 2.09% of
proposals voted on by Liontrust funds were filed by shareholders in
the following areas:
Votes cast on shareholder proposal categories
Routine
Business
Director
Related
Corporate
Governance
Human Rights
Compensation
Health /
Environment
Other/Misc
Misc:
Environmental
/ Social
0%
25%
% of votes cast with management
Routine Business
8.86%
Director Related
51.48%
Corporate Governance
5.91%
Human Rights
0.84%
Compensation
6.33%
Health / Environment
9.28%
Other / Misc
Misc- Environmental /
Social
13.50%
3.80%
Shareholder-filed
resolutions
50%
75%
100%
% of votes with ISS benchmark policy
Analysis of Share Action’s Voting Matters 2021 report
As long-term, active and responsible investors we encourage
companies to report on social and environmental issues that are
pertinent to their businesses. Rather than support all social and
environmental resolutions, each shareholder proposal is considered
on a case by case basis by the relevant investment team. In 2021,
we did not support certain proposals because we regarded them as
too prescriptive and/or we felt that the company already reported
sufficient disclosure.
To put this into context, Liontrust voted on 54 proposals outlined in
Share Action’s Voting Matters report. We voted in favour of 56%
and against 44%.
Liontrust: Engagement and Voting Report 2021 - 23