BY KIMBERLY ESTERKIN T
he concept of shareholder voting remains a linchpin of the modern public corpo- ration; it gives shareholders a voice to protect their economic interests and
to express their views on how a board oversees a company and its management.” Tis statement from “It’s all about choice,” a recent publication of BlackRock, aptly describes the investment firm’s commitment to helping retail investors gain a voice in public company shareholder proxy votes. Trough the lens of a proxy advisor, transfer
agent, retail investor enthusiast, buy-side activist, and Harvard law professor, this article will provide a better understanding of why BlackRock launched its Voting Choice pilot for retail and whether retail investors will take the plunge into proxy voting. It addresses what the BlackRock pilot means for the future of corporate governance and how investor relations officers can prepare for the increasing role of retail investors at their Annual General Meetings (AGMs). The BlackRock corporate communications team did not provide comments for this article since this pilot program is ongoing. However, they provided resources to support this article, many of which are referenced throughout.
How it All Began When Larry Fink (now Chairman and Chief Execu- tive Officer) and seven partners founded BlackRock in 1988, the firm’s main goal was to develop a company with its clients’ needs at the forefront. Tis meant delivering long-term value to share-
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holders by offering a range of investment choices. From a single room in New York to managing
more assets than any other investment manager worldwide, BlackRock has consistently set the stage for innovation in the financial world. While not all of BlackRock management’s decisions have enamored the public markets, most notably Fink’s public stance on environmental, social and governance (ESG) issues, there is no question that the firm has expertly leveraged technology to ad- vance the way equity and debt markets function. Tis vast range of choices to help investors meet their financials goals is what BlackRock believes has led so many to entrust the firm to manage their investments. In January 2022, BlackRock took that concept of choice another step further and extended it beyond investment decisions to shareholder proxy voting with the launch of an industry-first and proprietary offering called Voting Choice. Also known as pass-through voting, Voting Choice is described by Fink as a “capability that leverages technology and innovation to give our clients—who are the true owners of the assets we manage—the option to engage more directly in proxy voting.” Fink goes on to say in a client letter titled, “Te
transformative power of choice in proxy voting,” that he is “convinced that Voting Choice has the power to transform the relationship between asset owners and companies…it can enhance corporate governance by injecting important new voices into shareholder democracy.” At a high level, Voting Choice provided eligible
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