Securities Transfer Association Releases Report on Improvements to U.S. Proxy Voting System

HAZLET, N.J., Sept. 23, 2014 /PRNewswire/ -- The Securities Transfer Association (STA) today released a written report on industry efforts to improve the U.S. proxy voting system.  The STA report describes the work of an industry-led End-to-End Vote Confirmation Working Group, formed in 2012 to address several back office problems affecting proxy voting at shareholder meetings in the United States.

The catalyst for these efforts was a 2011 study by the University of Delaware that evaluated the mechanics of providing electronic confirmation to investors that their proxy votes at shareholder meetings were cast as directed.  Since the Working Group was formed, new communications portals and share reconciliation procedures have been tested and implemented to improve the accuracy of the vote count. 

The STA report concludes that the proxy voting system is still too complex and expresses support for more substantive reforms to make proxy voting more transparent and accurate.

"The STA and its members have been supportive of the efforts of the End-to-End Vote Confirmation Working Group over the past 3 years, but realize that further work remains to be done," said Todd J. May, President of the STA and Senior Vice President of Wells Fargo Shareowner Services.  "We are still committed to the belief that pre-mailing reconciliation of voting entitlements would be a major step forward."

The STA intends to continue its work with the Working Group to build on the progress that has been accomplished and looks forward to further improvements to the vote confirmation process and the overall proxy voting system.

A full copy of the report is available on the STA website: http://www.stai.org/index.php

Contact:
Cynthia Jones, Executive Director of STA
(904) 683-5158  

SOURCE The Securities Transfer Association