Voting Review 2005

May 2006

Introduction

Manifest's review of the issues proposed to shareholders during 2005 together with a detailed analysis of the results. For the first time the review has been extended to cover national blue-chip indices in Belgium, France, Germany, Ireland, Italy, the Netherlands, Spain, Sweden and Switzerland.

Purchasing
Details

The 2007 survey is now available here, however if you still wish to purchase the 2005 survey, please contact: sales@manifest.co.uk or call + 44 1376 503500.

Paper version

75 page staple-bound report

£295

(VAT-free)

Electronic - Single User

In Adobe PDF format. For single user only - printing disabled, no physical or electronic distribution rights.

£295

(+VAT)

Electronic - Site License

Identical in content to the Single User version, but with the ability to print and the right to distribute copies within your organization.

£1000

(+VAT)

Survey
Highlights

The highest average level of dissent in the UK (including both “against” and “abstain” votes) was 2.67% in the Fledgling Index, compared to the 10.62% average on Italy’s S&P/MIB 40 index and 7.5% on France’s CAC 40.

United Business Media suffered the highest level of dissent against a management resolution in 2005 with an 87.22% vote of dissent against approving the report of the remuneration committee. Prior to the meeting Manifest had identified a number of issues that could have met with shareholder disapproval, including a proposed £250,000 payment to Clive Hollick for a successful handover to the incoming chief executive.

The UK has a significantly higher rate of meeting data disclosure than other European countries. The average rate of disclosure for the FTSE All-Share for 2005 was 75.09%, ranging from 99.22% in the FTSE 100 to 44.67% in the Fledgling index.

In comparison the highest rate of disclosure in blue-chip indices across Europe was only 45.65%. The average rate of disclosure for Germany’s DAX 30 was 90.9%, putting it considerably ahead of its nearest rival, the S&P/MIB 40 with 63.16%. At the bottom of the scale was Sweden with an average disclosure of 7.14%.

However, one area in which Europe outstrips the UK is in website disclosure, where despite significant improvements UK companies still seldom disclose proxy poll data on their website or through Regulatory News Announcement Services.

The UK is edging ever closer to the government’s objective for 60% voting turnout at shareholder meetings. Average turnout in the FTSE 100 has risen from 56.05% in 2004 to 58.25% in 2005; and in the FTSE 250 from 57.03% in 2004 to 59.03% in 2005. Turnout for 2005 was even higher in Switzerland and Spain, averaging 61.31% and 59.32% respectively.

There is significant voting distortion in France, the Netherlands and Sweden; Italy is home to a vast array of complex shareholder agreements; and this year France was under the spotlight for its companies’ tendencies to grant shareholders double voting rights. Not only do multiple voting rights disenfranchise shareholders, but by obscuring the veracity of poll data hinder the quality of engagement between a company and its owners.