According to RBC Global Asset Management's updated Proxy Voting Guidelines, the investor will vote against Nom/Gov Committee directors on boards with less than 25% women subject to company-specific exceptions, which may include a commitment to increase board gender diversity and measurable goals or targets to increase board gender diversity within a reasonable time period. The guidelines further expect companies to disclose their progress on reaching board gender diversity targets and the strategies or plans to achieve them.
In evaluating board diversity shareholder proposals, RBC GAM will:
- Generally support proposals that call for enhanced disclosure or reporting requirements regarding board diversity policies and procedures
- Generally support proposals to adopt non-binding guidelines for female or other minority representation on the board
- Review on a case-by-case basis proposals to adopt binding quotas or targets for female or other minority representation on the board
The investor will also consider the board’s approach to gender diversity in the executive officer ranks and any related goals, targets, programs or processes for advancing women in executive roles. As is the case with some other institutional investors, RBC GAM's guidelines also warn of a potential adverse voting impact on Nom/Gov Committee directors if the company adopts a virtual-only meeting format, a view which one would hope would be suspended (if not permanently evolved) in the context of the coronavirus or other health, safety and welfare risks that may trigger companies' virtual-only approach.
This post first appeared in the weekly Society Alert!