VOTING FRAMEWORK: PRINCIPLES‑BASED OR CASE BY CASE?
In our view, the answer is both. There are many areas within proxy voting where a principles‑based approach can be implemented effectively. For example, our proxy voting guidelines are generally designed to promote an appropriate level of board independence, robust shareholder rights, and strong linkage over time between executives’ compensation and company performance.
However, there are other areas where a case‑by‑case approach is necessary to achieve full alignment between our guidelines and our voting outcomes. For example, we employ an objective set of indicators to determine a director’s independence.
As a global asset manager serving clients with different perspectives, beliefs, time horizons, and investment goals, our objective is to use different lenses (environmental, social, ethical, and governance) to deepen our understanding of the investments held in our clients’ portfolios.