Most investors don’t know they can vote for how the company is run … but young shareholders are leading the way
- According to a new survey, more than half of investors are unaware of shareholder rights
- Young investors are better informed than those over 55
- Tulipshare activist platform allows investors to buy shares of companies to try to get them to act or change their behavior
Much has been done since the emergence of a new generation of investors during the pandemic, but how engaged are they?
While daily investors can accumulate new exciting stocks and accumulate their savings, most are unaware that they can make real changes in the companies in which they invest.
An increasing number of startups are now creating solutions that will help economists express themselves in the way fund managers vote on important issues.
Shareholders say most retail investors don’t know what a shareholder’s right is, and most don’t enjoy it
Tulipshare is one such platform. With the support of Monzo co-founder Tom Blomfield, he allows activists to buy shares of companies to try to get them to act or change their behavior.
The idea is to give ordinary investors an effect similar to that obtained by major investor activists. It currently allows companies on the New York Stock Exchange and Nasdaq.
Tulipshare says, “Most retail investors take a passive approach to investing by investing in an ETF or working directly with a consultant. As a result, they often lose their chance to bring their investment strategy in line with their views. “
And a recent survey of the platform among 1,001 consumers over the age of 16 found that there is a huge ignorance about shareholder rights. More than half – 60 percent – do not know that they are allowed to vote for how the campaign is run.
While the votes of institutional investors at the general meeting are increasing year by year, the votes of individual investors accounted for only 28 percent of the total number of their shares in the 2020 season.
A Tulipshare study shows that less than a quarter of respondents always enjoy their shareholders ’right to vote at the general meeting of companies in which they invest, both directly and through retirement or Isa.
This was stated by the founder and CEO Antoine Arguzh It’s money: “There is a systemic problem in the field of brokerage and capital management. The thinking is that investors are here only for profit and that they only care about performance and not about the company or the real corporate governance that they can run a business or invest in.
“You can really express your opinion on how your business is conducted and put your agenda on the company’s roadmap by owning a stake and part of that campaign.”
Young investors are exercising their rights more than their older counterparts: 34% of people aged 16 to 24 vote at the general meeting of the companies in which they invest money, while only 15% of people over the age of 55 vote.
Arguzh. said: “It’s ridiculous because the statistics turned out to be the opposite of real political voting, where the figures tend to be on the other side, where older crowds may be a little more inclined to actually use their citizens’ votes.”
“While in corporate governance I think young crowds may be a little more aware of who is actually influencing our lives.
“In the UK, people tend to understand that by changing these corporations, you are changing the system in which we live. So I think this generation, despite what we can read online, is one of the most educated generations. someday and that’s what we want to make money on.
“They understand who is actually controlling the impact. They may not necessarily have the right solutions or a way to really make a difference, but we can be their technology platform that supports this for them. ”
Tulipshare has launched a number of high-profile campaigns aimed at high-profile ESG campaigns.
His latest campaign was focused on Salesforce. Shareholders will present through Tulipshare a proposal to require the software company to verify an independent audit of its impact on civil rights, equity, diversity and inclusion.
Tulipshare is the main sponsor to present the proposal, which will be heard at the next General Meeting of Salesforce, which is expected to take place in June.
Most investors are unaware of their shareholder rights
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