Diversity, equity and inclusion continue to be a top priority for Vanguard, although the investor has not taken the step of creating firm voting policy guidelines (such as State Street’s promise to vote against Compensation Committee Chairs for any company not disclosing its EEO-1 report). However, a
recent report showed significant increases in Vanguard’s engagement requests with companies to discuss lack of gender or racial/ethnic diversity. In addition, Vanguard supported ESG resolutions 20% of the time this year, a significant jump from just 6% last year.
- Board Diversity. Vanguard engaged with 367 companies on the topic of board diversity and voted against 173 directors at companies where the investor had concerns about lack of diversity. In addition, Vanguard has supported 50% of shareholder proposals so far this year concerning board diversity among portfolio companies.
- Overall Workplace Diversity. Vanguard supported 37% of proposals concerning overall workforce diversity.
- Popular Proposals. Vanguard supported proposals demanding EEO-1 disclosure and annual reports on DEI efforts but voted against proposals on racial equity audits and pay gap reporting.
View Vanguard’s most recent proxy voting guidelines, including on diversity issues,
here.
