The initiative, called Investor Coalition for Equal Votes (ICEV), is a coalition of global asset owners including the Minnesota State Board of Investment, New York City Comptroller’s Office, New York State Common Retirement Fund, Ohio Public Employees Retirement System and the Washington State Investment Board, which collectively manages over $1 billion in assets in the United States.
The group will work with market players and policymakers to highlight the importance of proportionate shareholder voice for effective management and long-term sustainable corporate performance.
ICEV President and Railpen’s Chief Investment Officer, Caroline Escott, said: “At a time when policy makers are increasingly recognizing the value of effective investor management to achieve good results for members , it is essential that the voice of the shareholders is heard by the management of the company. stewardship toolkit, but dual-class share structures without automatic time-based sunset clauses mean long-term investors try to influence with a hand tied behind their back.
“We are delighted to work with the Council of Institutional Investors (CII) – a long-time advocate of corporate governance – and some of the world’s leading pension funds to advocate for equal voting rights. in portfolio companies is fundamental to the ability to engage with companies and to hold companies accountable for material risks and opportunities, and we hope that the work of the ICEV will mark a turning point in the debate on the structure of two-class ownership.
CII Executive Director Amy Borrus added: “Indefinite control is naturally alluring to any founder considering an initial public offering (IPO), so it behooves investors to communicate early and together about this long-term shipwreck when it comes to corporate governance We are delighted to partner with Railpen as co-leaders of this campaign, as this issue is increasingly global.
“This effort complements the CII bill in the United States that would require national stock exchanges to prohibit listings of new dual-class companies unless they have seven-year sunset provisions, or if each class , voting separately, approves unequal structure within seven years We will look to coalition members for their continued support in advancing the legislation.