Simon Zais, a senior manager at Egan-Jones Proxy Services, joins Mike Langford on the Modern Financial Advisor Podcast to discuss the importance of "proxy voting as a service" for financial advisors. They explore how proxy voting can help advisors deliver a higher level of service to their clients and align their portfolios with their clients' values and goals.
If you would like to follow up with Simon Zais, shoot him an email.
Key Takeaways From This Episode:
Proxy voting is an opportunity for financial advisors to deliver a higher level of service to their clients and align their portfolios with their clients' values and goals.
Proxy advisory firms provide guidance on voting and execute the voting process, making it easier for advisors to engage in proxy voting.
Proxy voting can have a significant impact on sustainable investing and shareholder activism, allowing investors to use their ownership stake to drive change in companies.
Having deeper conversations with clients about their worldview and investment stewardship can set advisors apart and add value to their practice.
The proportion of shares held by retail investors is growing, giving retail votes more weight in influencing company behavior. Proxy voting is no longer just for institutional shareholders; retail investors now have a voice in corporate governance.
Financial advisors should incorporate proxy voting into their conversations with clients to align investments with clients' values and goals.
Having meaningful conversations with clients about their values and goals can lead to stronger relationships and client satisfaction.
Advisors should take action based on these conversations and proactively engage with clients on proxy voting issues.
Resources Mentioned In This Episode:
Engine No. 1 vs Exxon - Simon mentioned this case as an example of proxy voting driving change at a company.
Simon's article titled "Hearts, Minds, and Votes: Where Smarter Wealth Managers Win"
Chapters
00:00 Introduction: Proxy Voting as a Service
06:03 Aligning Portfolios with Values and Goals
10:22 Proxy Voting and Making an Impact
23:04 The Growing Influence of Retail Votes
23:34 The Growing Influence of Retail Investors in Proxy Voting
26:01 Aligning Proxy Voting with Client Values and Goals
28:18 The Importance of Meaningful Conversations with Clients
31:38 Taking Action on Proxy Voting to Deepen Client Relationships