Trends in Shareholder Activism

The six most active sponsors of outside-shareholder proposals are not hedge funds or large institutional investors but rather certain individuals (often called corporate gadflies); certain labor unions; and certain religious groups and other issue-advocacy organizations, according to a new study by Proxy Monitor. More than 5 percent of all proposals were sponsored by two labor unions: the AFL-CIO; and the American Federation of State, County, and Municipal Employees (AFSCME). A substantial percentage of shareholder proposals have little to do with corporate performance or increasing share value.