The complete guide to proxy voting

What does Proxy Voting mean?

Anyone with a 401(k) or other investments owns company shares and is, therefore, a shareholder. Proxy voting is the process, and proxy voting guidelines are the principles and rules that ensure those people and institutions still have a voice. In a recent Vanguard survey, the majority of investors expressed a desire to use that voice, with 58% saying they were more likely to invest in a fund if they could influence proxy voting decisions.

In a shareholder or corporation's absence, an individual or firm casts a proxy vote on their behalf. Because proxy voting is the single most important avenue by which publicly traded companies report to shareholders, following rigorous guidelines is essential. The 2025 proxy season introduced significant regulatory changes and new compliance requirements that make understanding these guidelines more critical than ever.

Read more to learn about the key components of Proxy Voting.