In recent years, shareholders have gained greater control of corporations through the introduction of tools like shareholder proposals or executive compensation. But have they used these new powers to become an independent voice in corporate governance? Intriguingly, shareholders generally vote in line with companies’ boards of directors. What might account for such weak levels of shareholder dissent?
As Canada Research Chair in Corporate Governance, Dr. Daniel Waeger aims to answer questions like these. Existing research points to structural and institutional factors, but we lack an understanding of how the strategic actions of boards and shareholder activists may influence dissent. Waeger and his research team are addressing this knowledge gap by analyzing how boards’ and shareholders’ strategic communication affect voting outcomes at annual meetings.