Take Action
As a Shareholder
As a Mutual Fund Investor
Understand the Ways in Which You Can Make a Difference
As a Shareholder
As a Mutual Fund Investor
Why Diversity at the Top is Important
Take Action!
If you own shares in a mutual fund :
- If you receive a proxy statement and ballot, take the same actions as described in the case of direct investments in companies, but use the following (or similar) language for your comments:
"Women make up a substantial portion of your investors and employees. I notice there are no (only one, only two) women serving on your board of trustees. Why are there no (so few) women? Men and women expect the board to closely reflect your stakeholders. More women trustees are good for governance and good for business. We are looking for you to quickly take steps to make sure the representation of women is improved."
If you are not given an opportunity to elect fund trustees, write to the non-management trustees using similar language. These individuals and the manner in which you can communicate with them are identified in mutual fund annual reports and proxy statements. Even if you have a say in elections, a letter such as this also can be effective.
If you are unhappy with the number of women on the board of one or more of the companies in which the fund has major investments, here's how to express your point of view:
- Write or email the fund, using the following (or similar) language for your comments:
"I note that the fund has invested heavily in the stock of [name of company]. That company has no (only one, only two) women serving on its board of directors despite the fact that women make up a substantial portion of its shareholders, customers, and employees. Why are there no (so few) women? Men and women expect the board to closely reflect the company's stakeholders. More women directors are good for governance and good for business. We are looking for you to exercise your proxy in [name of the company]'s board elections in a way that will make sure the representation of women is improved."
Refer to your mutual fund annual reports to identify the top ten holdings of each fund.
If you are unhappy that the fund's proxy voting guidelines do not take board diversity into account, here's how to express your point of view:
- Write or email the fund, using the following (or similar) language for your comments:
"I have read the fund's proxy voting guidelines and am dismayed that none of them address the issue of diversity in corporate leadership positions. Women make up a substantial portion of most companies' shareholders, customers, and employees, and men and women today expect boards and executive suites to closely reflect company stakeholders. More women in leadership positions are good for governance and good for business. You are in a position to improve the representation of women in the leadership of the companies in which the fund invests by adopting and implementing proxy voting guidelines such as one of the following:
The Fund will oppose slates of directors that result in a board that does not include women and may oppose slates of directors that include women if the Fund concludes that the number of women on the board is not a fair representation.
The Fund will normally withhold votes from a slate of board nominees if the board does not include any women.
The Fund will support shareholder proposals to increase diversity on the board of directors or that ask the company to take steps to nominate more women to the board.
I hope that you will do so promptly."
Mutual fund annual reports and proxy statements tell you how to find proxy voting guidelines and voting history.
Other useful guidelines have been proposed by Domini Social Investments, Calvert Investments, Citizens Funds, Trillium Asset Management, Walden Asset Management, Pax World Funds and others.
Your feedback is important!
When you take any of these actions, please
what you have done and what responses you have received. Your feedback is important to ION's educational and advocacy efforts. It will help us to become more effective in bringing about change in the composition of corporate leadership. Your participation in this effort will also help obtain greater publicity for the important role being played by women investors. Thank you for helping us to make a difference!