Robinhood Enters the Realm of Proxy Voting
Here's how the popular trading platform's recent acquisition is part of a bigger trend--and how it impacts investors.
Robinhood (HOOD) recently acquired Say Technologies, a shareholder engagement platform that simplifies the proxy voting process for investors and helps them communicate with the CEOs and leadership teams of the companies in which they're invested.
Proxy voting allows investors to have a say in executive compensation, board director approval, and a wide variety of environmental, social, and governance concerns. Despite the growing interest in ESG, few individual investors are putting their votes to use. On average, individual shareholders vote on just 32% of their shares, compared with the 80% rate of participation among the entire shareholder base, according to a Harvard study.
Lauren Solberg does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.