The shareholder proposal rules permit investors to express their voices collectively on issues of concern to them, without the cost and disruption of waging proxy contests. The rule works particularly well in granting retail investors — who lack other avenues to meaningfully engage with management — a voice in the companies they own.
— Ken Bertsch, CEO, Council of Institutional Investors

Indexing strategies do not readily lend themselves to selling a company’s stock entirely as a means of mitigating . . . risk. Instead, we encourage companies to address material . . . ESG issues that could jeopardize long-term financial performance. The shareholder proposal process is an important risk mitigation tool.
— Thomas DiNapoli, NY State Comptroller Trustee of New York State Common Retirement Fund