Retail investor participation in voting and attendance at annual general meetings (AGMs) shot up in 2022, according to Interactive Investor (II).
The platform reported a 30% jump in the total number of votes processed by retail investors to 210,801 in 2022, up from 162,673 the previous year.
The percentage of votes used dropped to 7.8% from 13.6% in 2021, however, although this represents an improvement on pre-pandemic levels.
II also witnessed an uptick in the number of accounts requesting representation at AGMs, albeit from a very low base, with 720 separate accounts requesting letters of representation at AGMs in 2022, double the 359 sent in 2021.
Richard Wilson (pictured), II chief executive, said: “Private investors can have a powerful collective influence over a company’s conduct and future direction through their vote, should they wish to use it. And we believe it is our duty to facilitate this.
“Our latest numbers are hugely encouraging and are a timely reminder that you don’t always need to reinvent the wheel to affect positive and significant change. Sometimes, you just need to remove barriers and red tape. We know there is far more to do,” he added.
“Nor are we complacent. But our data should be food for thought for the industry. We shouldn’t let UK PLC off the hook either, shareholder communications need to be far better tailored to private investors, who have been disenfranchised by legalese for too long.”
The platform has previously called on the UK’s financial authorities to support retail investors by introducing guidance similar to the US Securities and Exchange Commission’s ‘plain English handbook’ to improve engagement.
Votes processed by retail investors
| Year | Number of votes processed | Percentage of votes used |
|---|---|---|
| 2019 | 43,753 | 6% |
| 2020 | 78,986 | 8.1% |
| 2021 | 162,673 | 13.6% |
| 2022 | 210,801 | 7.8% |
The most popular votes
The company that triggered the highest level of engagement from retail voters on II’s platform was Lloyds Bank – unsurprising as it is the most widely-owned UK stock. Its AGM in May had the most private shareholder votes cast of any meeting in 2022. This was followed by BP and Aviva’s AGMs in the same month.
II’s head of equity strategy, Lee Wild, said: “There were plenty of other high-profile meetings in 2022 that gave investors a chance to let companies know what they thought of them. On occasions, one side might have wished they hadn’t bothered.
“Aviva used its annual get-together to wave through a £4.75bn return of capital, but it was the behaviour of some shareholders that grabbed the headlines, and for the wrong reasons. Sexist comments aimed at Amanda Blanc, Aviva’s first female CEO, proved there is still work to be done eradicating behaviour more fitting to the Dark Ages. A topic very much of the modern age continued to cause chaos at AGMs held by the major oil companies.
“After police removed climate protestors from Shell’s meeting in May, it emerged that 20% of shareholders voted against the firm’s energy transition strategy. The same number voted in favour of a special resolution forcing Shell to do more to cut greenhouse gas emissions. A fifth of votes going against the majority demonstrates the power that shareholders wield, although, in this instance, the enthusiasm for change was significantly lower than the previous year. It was a similar story at BP.”
See also: Removing barriers saw 48% rise in shareholder ballots cast on Interactive Investor
