As owners, shareholders have the right to influence the way companies are run. We can select the directors who will govern the company on our behalf. We can influence the how much directors and senior management are paid. We also have the right to vote on transactions, such as those conducted with related parties and/or those that could ultimately change the nature of the company.
AMP Capital takes this right seriously. As such, it is our policy to lodge considered votes on behalf of our clients, using the voting rights to support resolutions we deem to be in our clients’ best interests or reject those which we consider to be unfair, unreasonable, or in some way detrimental to the company’s ability to generate solid returns for shareholders.
Rather than relying solely on voting as the mechanism by which to send messages to companies, AMP Capital also engages directly with companies on issues of concern.
In 2017, our ESG Investment Research team had around 150 direct interactions with the boards and/or management of Australian companies. While the topics discussed vary greatly from company to company, recurring themes were once again: gender diversity, environmental and social responsibility, executive pay, and the management of ESG risks, such as safety, cyber security, conduct and compliance.