Another popular topic in 2016 was reporting on and managing risks related to climate change, which accounted for votes on more than 175 resolutions. The contention among some critics is a number of individual activists are acting on behalf of in an effort to demonstrate shareholder populism for union issues. We provide the most comprehensive and highest quality financial dictionary on the planet, plus thousands of articles, handy calculators, and answers to common financial questions -- all 100% free of charge. That is, the gadfly may question executive pay, ask why a was not larger when it could have been, and may also generally point out issues about which other shareholders may not be aware. A slightly derogatory term for a who attends and asks the executives difficult questions. Although institutions such as are active in submitting shareholder proposals, in 2014 and 2015, the largest number of proposals has been concentrated among a small group of individuals who may be motivated by personal interests. Obviously, many executives do not like the presence of gadflies, though shareholders may find them useful.
Together, John Chevedden, William Steiner and James McRitchie were responsible for one-third of shareholder proposals introduced through mid-2015. Proposals offered by shareholders must be placed on the agenda and offered up for a vote at the next annual shareholders' meeting. Gadflies play a key role in empowering small investors against corporate managers who may not be acting in their best interests. Most proposals center on environmental concerns, , corporate political spending or , executive compensation, access, special meetings, or voting rules. Because most proposals raise issues company management tend to avoid, they often trigger a confrontation, forcing management to urge the shareholder base to vote it down or act on a compromise. Proponents of contend corporate gadflies are at the heart of a rising shareholder democracy that focuses attention on key issues that would otherwise remain obscured.
In 2016, there were about 1,000 shareholder proposals filed in the United States, of which about 400 were on social and environmental issues. A gadfly adds value for other shareholders by vocalizing his concerns and inciting action. A growing focus for gadflies is on the issue of board diversity, coupled with a study by Credit Suisse showing that companies with at least one woman on their boards outperformed those with none by nearly 40 percent between 2006 and 2016. Sometimes she wore costumes and bathing suits in the meetings to get attention. In one instance, she badgered the board of Bristol-Myers Squibb to change its to require annual elections for all board members.
The term gets its name from the insect, which bites and annoys animals usually livestock. Such investors are activist shareholders who advocate for changes in corporate governance by offering proposals for votes at annual meetings. There are many famous , but one of the most notable was Evelyn Y. You can complete the definition of gadfly given by the English Definition dictionary with other English dictionaries: Wikipedia, Lexilogos, Oxford, Cambridge, Chambers Harrap, Wordreference, Collins Lexibase dictionaries, Merriam Webster. Search gadfly and thousands of other words in English definition and synonym dictionary from Reverso. Our in-depth tools give millions of people across the globe highly detailed and thoroughly explained answers to their most important financial questions.
Most gadflies tend to focus on issues of a religious, public policy or social investing nature, but issues centering on corporate governance policies, such as executive compensation, are more likely to gain traction with voting shareholders. . She was able to get Dow Jones and a firm to follow suit as well. Critics of shareholder activism point to the enormous cost incurred by companies to respond to shareholder proposals. Each month, more than 1 million visitors in 223 countries across the globe turn to InvestingAnswers.
Questions regarding or inconvenient locations are often brought to light by a gadfly. Named after small insects that bite and annoy livestock, the gadfly looks to irritate a corporation's management until it acts or compromises on shareholder concerns. Davis, who spent 40 years confronting managers at annual meetings regarding their compensation and performance. . . . .
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