Retail investors on the eToro platform are now empowered not only to receive dividends but also to vote in shareholder meetings globally, no matter the companies they have stakes in.
This update follows the successful deployment of proxy voting for U.S. stocks last year, which saw eToro users submit over 145,000 votes.
eToro’s partnership with Broadridge Financial Solutions Inc. has facilitated this expansion, enabling even those with fractional shares to participate in Annual General Meetings (AGMs) of companies worldwide.
This allows retail investors to weigh in on critical issues such as mergers, executive compensation, and environmental, social, and governance (ESG) objectives.
“eToro users embraced proxy voting last year, and we are thrilled to be building out this feature to include all stocks on our platform,” said Dan Moczulski, the UK Managing Director at eToro.
“Our users invest in companies from all over the world. Now, they can have their voice heard with these companies by having a say in big corporate decisions.”
According to eToro’s Retail Investor Beat survey, which included 10,000 participants from 13 countries, interest in proxy voting is on the rise.
Findings show that 29% of retail investors have participated in an AGM, an increase from 26% in the prior survey.
The common voting topics were director elections or re-elections (47%), dividend policies (45%), share buybacks (34%), and executive pay (30%).
Additional research from eToro indicates that 27% of retail investors are shifting their focus from large corporations to smaller companies, aiming to have a more significant impact on their growth and value.
The expansion of the proxy voting feature reflects the increasing demand among retail investors for more substantial involvement and influence in their investment companies.
“We are witnessing the evolution of a new generation of retail investors – one that has expectations for more choice, convenience, and simplicity as their appetite to influence a company’s direction grows,” Demi Derem, General Manager of International Corporate Governance, Digital Transformation and Market Innovation at Broadridge, emphasized.
Broadridge has been working with eToro on facilitating proxy voting since its introduction in the United States in late 2022.
This feature has gained considerable traction, allowing investors worldwide to participate actively in their invested companies’ governance.
“Proxy voting will be an increasingly important feature for our users, allowing them to exert their rights as shareholders and have a direct influence on the companies they hold in their portfolio,” noted Gili Wolff, Senior Director of Product, Trading, and Dealing at eToro.
In related news, eToro is currently seeking to expand its regulatory footprint by applying for a license in Singapore.
Furthermore, reports suggest that eToro is considering going public through an Initial Public Offering (IPO), as discussed by Drew Niv, founder and former CEO of FXCM, with Finance Magnates.