Governance-related resolutions are receiving more overall votes from defined contribution pension plan members, but environmental issues are more engaging on a vote-per-measure basis, according to a new survey by two U.K.-based organizations.
The study, by asset management firm Legal and General Investment Management Ltd. and fintech company Tumelo, found measures related to all levels of remuneration were the issue most voted on by DC plan members. While less frequent, environmental issues received more ballots on a per-measure basis.
Analyzing 13,000 votes cast by DC plan members in 105 ESG-related resolution votes, the study found 3,120 of the 15,000 votes were on 46 resolutions related to the compensation of plan employees or board members. On average, each pay-related resolution garnered 67 votes from plan sponsors.
Other governance resolutions received a significant number of votes from plan members, including those related to diversity, which secured even higher votes-to-measure ratios. With 847 ballots cast on just eight measures, lobbying issues garnered a 106 vote-per-measure ratio, higher than any other governance issue.
While they secured fewer overall votes from DC plan members, environment-related issues were more popular on a vote-per-measure basis. Of the 14 measures specifically related to climate issues, the study found an average of about 91 plan member votes were cast for each measure. Those related to plastic and packaging generated the highest votes-per-measure ratios of any category, averaging at about 205 and 322, respectively.