In a 4-minute video, Fortune asks Vanguard’s CEO, based on Proxy Democracy data, why they vote against management less than 85% of funds. The CEO answered that Vanguard has its principles on the Internet and frequently engages with the companies it invests in. He thinks they’ve been successful with quiet diplomacy. From those principles:
The funds generally did not support proposals that would mandate specific actions with respect to executive compensation (limiting the discretion of an independent compensation committee), call for separating the duties of chief executive and chairman, or require particular corporate or social policies.
The Vanguard family of funds voting profile on Proxy Democracy shows that Vanguard funds have voted against the recommendation of management on 13.7% of the proposals they have faced. 87% of the fund families in the Proxy Democracy database voted against management more often than that. (thanks to Fortune Uses ProxyDemocracy To Critique Vanguard’s CEO On Their Voting Record, VoterMedia Finance Blog, 6/30/10)
See how your funds are voting; decide how to vote the stocks you hold as a retail investor. Proxy Democracy has the tools to inform your investing behavior and your vote.