{"id":55022,"date":"2025-02-04T13:43:39","date_gmt":"2025-02-04T18:43:39","guid":{"rendered":"https:\/\/allianceadvisors.com\/vanguard-releases-2025-u-s-policy-updates\/"},"modified":"2025-03-11T05:20:21","modified_gmt":"2025-03-11T09:20:21","slug":"vanguard-releases-2025-u-s-policy-updates","status":"publish","type":"post","link":"https:\/\/allianceadvisors.com\/es\/vanguard-releases-2025-u-s-policy-updates\/","title":{"rendered":"Vanguard Releases 2025 U.S. Policy Updates"},"content":{"rendered":"
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Vanguard Releases 2025 U.S. Policy Updates<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n[\/vc_column_text][vc_column_text align=»left» css=».vc_custom_1734542934249{padding-top: 20px !important;padding-right: 30px !important;padding-bottom: 20px !important;padding-left: 30px !important;background-color: #f5b335 !important;border-color: #f5b335 !important;}» width=»600px» color=»#393939″ font_weight=»600″ line_height=»tight» font_size=»d:lg|pp:16px»]\n

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By Shirley Westcott<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n[\/vc_column_text]

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<\/div>[\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=»»]Vanguard has published its updated voting policies for U.S. portfolio companies, which take effect in February 2025¹  Its most pronounced alterations deal with its policies on board composition — specifically board diversity — and on shareholder proposals on environmental and social (E&S) matters. Vanguard has also made minor changes to its policies on board independence, board responsiveness and director commitments, and has clarified the factors it considers when evaluating mergers, acquisitions and financial transactions.\n

Board Composition<\/strong><\/p>\n

Vanguard has largely gutted its discussion of board diversity in terms of explicit references to gender, race and ethnicity and replaced “diversity” with “personal characteristics.”  In evaluating board composition, Vanguard will continue to look to disclosures regarding the skills, background, experience and personal characteristics of each director, preferably in a matrix format.<\/p>\n

Vanguard has deleted its policy of supporting shareholder requests to disclose the company’s approach to board composition, inclusive of board diversity.  It has also revised its policy of voting against the nominating\/governance committee chair if the company’s board is not taking action to achieve board composition that is appropriately representative, relative to its market and the needs of its long-term strategies.  Vanguard will now take such action if, based on its research and\/or engagement, the company’s board composition and\/or related disclosure is inconsistent with market norms or market-specific frameworks.<\/p>\n

Environmental\/Social Proposals<\/strong><\/p>\n

Vanguard will continue to evaluate shareholder proposals on E&S issues on their merits and in the context of a company’s current practices and public disclosures.  However, it has underscored that it is not the funds’ role as passive investors to dictate company strategy or interfere with a company’s day-to-day management.  Its analysis of E&S proposals aims to strike a balance between avoiding prescriptiveness and providing a long-term perspective.<\/p>\n

Reflecting the fact that it did not support any E&S shareholder resolutions in 2024, Vanguard’s revised policy simply states that it is likely to support proposals seeking disclosure of material risks and\/or the company’s policies and practices to manage them over time.  It has eliminated its list of specific types of E&S proposals that it is inclined to support, which previously included requests for the following:<\/p>\n