Neuberger Berman commits to advance proxy disclosure

Neuberger Berman has become one of the first major asset managers to commit to advance proxy voting disclosures.

It announced this week that it would publicly state beforehand how it plans to vote on select proposals at upcoming AGMs.

The initiative, called ‘NB25+’, will see the asset manager disclose its voting intentions at more than 25 AGMs.

Such intentions will be decided by the firm’s overall investment staff and not a small stewardship group, the company said, with the aim of protecting shareholder capital, promoting transparency and exceeding regulatory requirements.

Over time, the firm plans to expand the initiative beyond nine main governance and engagement principles, including strategy, remuneration, board independence, shareholder representation and environmental and social issues. It also intends to invite other managers to disclose their key votes.

According to Neuberger Berman, no other asset manager with assets over $100bn discloses their votes ahead of shareholder meetings.

Any that do disclose voting activity only do so long after the event “if at all”, according to Neuberger Berman. It added that growing “passive ownership” made “the focus and clarity” of active managers’ voting choices a potentially important driver of shareholder value.

Neuberger Berman chief executive George Walker said this initiative came about as shareholders need to engage as owners in order for capitalism to properly function.

“Therefore, we have decided to step forward and share our thinking upfront on issues facing companies in which we invest,” he said.

“It can be tough to publicly challenge management or speak up for or against activists, but we think it’s more important now to make our voice heard as we seek to improve the firms in which we invest.”

Disclosures will be published on the firm’s website, as well as voting summaries throughout proxy season.

So far, the company has revealed its intention to support the management of software company Adobe Systems against a shareholder proposal regarding a median gender and racial pay equity report.

Neuberger Berman said it believed the company had provided substantial disclosure allowing shareholders to evaluate the quality of oversight and progress on this issue.

Last Updated: 22 April 2020