LONDON/BOSTON: BlackRock plans to give large clients more of a say on ballots cast at company annual meetings, a move that some industry experts predicted could result in companies facing more opposition from rebellious shareholders.
"I expect this will have a significantly negative impact on the level of support that management receives," DiGuiseppe said.Bruce Goldfarb, president of proxy solicitor Okapi Partners LLC, said he expected the changes would only have a marginal impact. "More people are viewing their investments as engagement mechanisms, not just bets on winning alpha," or higher returns, he said.
A massive surge of money into low-cost index funds has left BlackRock frequently owning 5 per cent or more of top corporations. The firm and its rivals traditionally deferred to companies' recommendations on shareholder votes, though this has started to change.