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Proposal name
Board Recommendation
Neuberger Berman Pre-Disclosed Vote
ENVIRONMENTAL, SOCIAL AND GOVERNANCE INVESTING
Through our NB Votes initiative, we publish our vote intentions in advance of select shareholder meetings, with a focus on companies where our clients have significant economic exposure. NB Votes addresses a broad range of topics across our nine key governance and engagement principles with a balance of votes in support of and against management recommendations, enabling us to share our broad analysis and insights. In the 2021 proxy season, we expect corporate response to the COVID-19 crisis to play a key role in our vote decisions.
WEBINAR
In this webinar, our global panel of portfolio managers and ESG investing experts discuss the importance of NB Votes in creating value for clients. Portfolio managers review active ownership examples they've experienced, including advance votes and the rationale behind voting intentions.
2021
61 meetings
2020
31 meetings
ENGAGEMENT & PROXY VOTING
We believe voting proxies on behalf of our clients is an important component of creating shareholder value. This engagement fulfills our fiduciary responsibility to protect our clients’ best interests and our Governance and Proxy Committee oversees our Proxy Voting Policy and process to ensure there are no conflicts of interest. We provide guidelines and procedures to emphasize our transparency in proxy voting to clients.
Advance Vote Disclosure Overview
Jonathan Bailey, Head of ESG Investing at Neuberger Berman, introduces our advance vote disclosure initiative, which entails Neuberger Berman’s commitment to releasing our voting intentions on over 25 proxy votes this proxy season.
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Voting Statistics
In our consideration of a voting decision, we look to balance the expectation that we set a high bar for board effectiveness while acknowledging the information asymmetry between shareholders and company management. This means that we must, at times, begin with the assumption that management and the board are carrying out their duties faithfully, however it does not mean that we are shy about voicing our concerns through engagement and voting. We feel it is important to reiterate that our public voting policy, and not deference to management, is always our default position.
We find ourselves opposing many proposals that are either unclear in their alignment with shareholder interests or at odds with our judgment of the best course for the company. This is reflected in both the 89% of management proposals that we supported in the last year and the 11% we opposed. Some of the main areas of opposition involved management compensation and share issuances without a clear case for the dilution.
In 2020, we continued to engage in enhanced dialogues with companies and critically reviewed shareholder resolutions. Improved quality of shareholder resolution enabled engagements to prioritize the most material issues.
Management and Shareholder Proposal Vote Distribution for 20201
Meetings Voted
In 2020, the number of meetings voted on behalf of our clients is consistent year over year, seeing a 1% increase from the prior year. We continue to see a steady growth in number of meetings voted in the EMEA region (up 14% since 2017) and Japan (up 46% since 2017) driven by efforts to diversify risks across new sectors and market capitalizations, as well as reaching into new investing opportunities.
Additional Information
2020 Meetings Voted by Region and Percentage Increase Since 20172
Insights
NB Votes for Meaningful Change
Using broad analysis and insights, the ESG Investing team evaluated what, in their view, is important to share with companies in order to make a difference, especially after a year like 2020.
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Insights
Tremors in Credit and Currency Markets
November’s modest uptick in volatility, driven by a recalibration of the market’s macroeconomic expectations, could be a sign of things to come.
Understanding China Market Dynamics
(15:00) We believe having on the ground insight is key to understanding China market dynamics.
The Open Road Leads to the Used-Car Lot
Your car is worth more than you think—record-high car prices remain elevated due to shortfalls in new car volumes from OEM’s.
George Walker on CNBC: Taking a Stand with NB Votes
(7:55) George Walker, Chairman and CEO of Neuberger Berman, discusses Neuberger Berman’s advance proxy voting disclosure initiative, NB Votes, on CNBC.
Engagement at Its Core: Inside the Advance Proxy Voting Initiative
(17:01) As we have concluded this year’s inaugural advanced proxy vote disclosure initiative, we highlight the importance of advanced vote disclosure, how engagement with portfolio companies is at the core of the investment process and what lies ahead for the next proxy voting season.
The 2020 Proxy Season and NB Votes
Neuberger Berman’s Engagement Series presents insights and case studies on our dialogue with companies, government entities and other securities issuers.
Advance Vote Disclosure
(2:18) Jonathan Bailey, Head of ESG Investing at Neuberger Berman, introduces our advance vote disclosure initiative, Neuberger Berman’s commitment to releasing our voting intentions on over 25 proxy votes this proxy season.
Neuberger Votes Against Lennar Management in First Vote of New Proxy Initiative
Starting on April 3rd, as part of a new Neuberger Berman initiative, NB25+, we began to publish our vote intentions in advance for key votes. We have committed to do so for at least 25 votes this proxy season.Engagement
Explore insights and case studies focusing on our dialogue with companies, government entities, and other securities issuers.
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