2021 ESG Annual Report

Voting Statistics

In our consideration of the voting decision, we look to balance the expectation that we set a high bar for board effectiveness while acknowledging the information asymmetry between shareholders and company management. This means that we must, at times, begin with the assumption that management and the board are carrying out their duties faithfully; however, it does not mean that we are shy about voicing our concerns through engagement and voting. We feel it is important to reiterate that our public voting policy, and not deference to management, is always our default position. We find ourselves opposing many proposals that are either unclear in their alignment with shareholder interests or at odds with our judgment

of the best course for the company. This is reflected in both the 89% of management proposals that we supported in the last year and the 11% we opposed. We opposed management on at least one item at 42% of meetings. Some of the main areas of opposition for management proposals involved director elections, management compensation, and share issuances without a clear case for the dilution. Main drivers of management opposition for shareholder proposals were related to political spending and lobbying disclosure, the separation of chair and CEO, and the elimination of supermajority provisions.

Management and Shareholder Proposal Vote Distribution for 2021

MANAGEMENT PROPOSALS (46,470 VOTED)

89 %

Opposed Proposal Supported Proposal

666 1%

89%

11%

MANAGEMENT PROPOSALS SUPPORTED

MANAGEMENT AND SHAREHOLDER PROPOSAL DISTRIBUTION

0% 20% 40% 60% 80% 100%

SHAREHOLDER PROPOSALS (666 VOTED)

43 % SHAREHOLDER RESOLUTIONS SUPPORTED

Supported Proposal

43%

46,470 99%

Opposed Proposal

57%

Management

Shareholder

0% 20% 40% 60% 80% 100%

Source: Neuberger Berman. Data for the calendar year 2021.

2021 ESG ANNUAL REPORT

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