A survey of US institutional investors’ use of proxy voting with public companies finds responsible investors use their proxy votes to signal approval or disapproval of the gender and racial diversity on corporate boards.

The survey, supported by the Thirty Percent Coalition, was developed by Boston Common Asset Management, and its attached report notes that almost half (43 per cent) would vote against boards which lacked at least 30 per cent diversity, consistent with the Thirty Percent Coalition’s goal.

A majority (60 per cent) consider gender, race and ethnicity (among other aspects) in evaluating the diversity on the board and over 80 per cent would vote in favour of shareholder proposals requesting greater board diversity on corporate boards.

Lisa Hayles, principal at Boston Common Asset Management, said: “We wanted to understand how institutional investors are leveraging proxy votes to demand greater gender and racial diversity in the boardrooms of public companies. The results of our survey show how investors are exercising their proxy votes to hold companies accountable in specific, measurable ways over time.”

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