|
|
|
(as revised June 1, 2023) |
|
2022 Prospectus |
Annual Fund Operating Expenses | |||
Management Fees |
Distribution and Service (12b-1) Fees |
Other Expenses |
Total Annual Fund Operating Expenses |
|
|
|
|
1 Year |
3 Years |
5 Years |
10 Years |
$ |
$ |
$ |
$ |
|
One Year |
Five Years |
Since Fund Inception |
(Inception Date: |
|
|
|
Return Before Taxes |
|
|
|
Return After Taxes on Distributions1 |
|
|
|
Return After Taxes on Distributions and Sale of Fund Shares1 |
|
|
|
MSCI Frontier and Emerging Markets Select Index2 (Index returns do not reflect deductions for fees, expenses or taxes) |
|
|
|
|
iShares Frontier and Select EM ETF | ||||
|
Year Ended 08/31/22 |
Year Ended 08/31/21 |
Year Ended 08/31/20 |
Year Ended 08/31/19 |
Year Ended 08/31/18 |
Net asset value, beginning of year |
$33.86 |
$25.69 |
$28.97 |
$28.29 |
$30.62 |
Net investment income(a) |
0.88 |
0.65 |
0.87 |
1.03 |
0.87 |
Net realized and unrealized gain (loss)(b) |
(6.63 ) |
8.20 |
(3.36 ) |
0.76 |
(1.99 ) |
Net increase (decrease) from investment operations |
(5.75 ) |
8.85 |
(2.49 ) |
1.79 |
(1.12 ) |
Distributions from net investment income(c) |
(0.82 ) |
(0.68 ) |
(0.79 ) |
(1.11 ) |
(1.21 ) |
Net asset value, end of year |
$27.29 |
$33.86 |
$25.69 |
$28.97 |
$28.29 |
Total Return(d) |
|
|
|
|
|
Based on net asset value |
(17.26 )% |
34.77 % |
(8.44 )% |
6.45 % |
(3.92 )% |
Ratios to Average Net Assets(e) |
|
|
|
|
|
Total expenses |
0.80 % |
0.79 % |
0.79 % |
0.79 % |
0.81 % |
Net investment income |
2.73 % |
2.17 % |
3.27 % |
3.63 % |
2.69 % |
Supplemental Data |
|
|
|
|
|
Net assets, end of year (000) |
$350,642 |
$496,099 |
$373,769 |
$496,868 |
$523,445 |
Portfolio turnover rate(f) |
34 % |
36 % |
25 % |
33 % |
35 % |
(a) Based on average shares outstanding. | |||||
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. | |||||
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. | |||||
(d) Where applicable, assumes the reinvestment of distributions. | |||||
(e) Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. | |||||
(f) Portfolio turnover rate excludes in-kind transactions. |
Call: |
1-800-iShares or 1-800-474-2737 (toll free) Monday through Friday, 8:30 a.m. to 6:30 p.m. (Eastern time) |
Email: |
iSharesETFs@blackrock.com |
Write: |
c/o BlackRock Investments, LLC 1 University Square Drive, Princeton, NJ 08540 |
Funds |
Ticker |
Listing Exchange |
iShares Core MSCI Emerging Markets ETF |
IEMG |
NYSE Arca |
iShares Emerging Markets Equity Factor ETF |
EMGF |
Cboe BZX |
iShares ESG Aware MSCI EM ETF |
ESGE |
Nasdaq |
iShares Frontier and Select EM ETF |
FM |
NYSE Arca |
iShares MSCI Agriculture Producers ETF |
VEGI |
NYSE Arca |
iShares MSCI Brazil ETF |
EWZ |
NYSE Arca |
iShares MSCI BIC ETF |
BKF |
NYSE Arca |
iShares MSCI Chile ETF |
ECH |
Cboe BZX |
iShares MSCI Emerging Markets Asia ETF |
EEMA |
Nasdaq |
iShares MSCI Emerging Markets ETF |
EEM |
NYSE Arca |
iShares MSCI Emerging Markets Min Vol Factor ETF |
EEMV |
Cboe BZX |
iShares MSCI Emerging Markets Small-Cap ETF |
EEMS |
NYSE Arca |
iShares MSCI Global Energy Producers ETF |
FILL |
NYSE Arca |
iShares MSCI Global Gold Miners ETF |
RING |
Nasdaq |
iShares MSCI Global Metals & Mining Producers ETF |
PICK |
Cboe BZX |
iShares MSCI Global Min Vol Factor ETF |
ACWV |
Cboe BZX |
iShares MSCI Global Silver and Metals Miners ETF |
SLVP |
Cboe BZX |
iShares MSCI Malaysia ETF |
EWM |
NYSE Arca |
iShares MSCI South Korea ETF |
EWY |
NYSE Arca |
iShares MSCI Taiwan ETF |
EWT |
NYSE Arca |
|
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133 |
Diversified Funds |
Non-Diversified Funds |
iShares Core MSCI Emerging Markets ETF* |
iShares MSCI Agriculture Producers ETF |
iShares Emerging Markets Equity Factor ETF |
iShares MSCI Brazil ETF |
iShares ESG Aware MSCI EM ETF |
iShares MSCI Chile ETF |
iShares Frontier and Select EM ETF |
iShares MSCI Global Energy Producers ETF |
iShares MSCI BIC ETF* |
iShares MSCI Global Gold Miners ETF |
iShares MSCI Emerging Markets Asia ETF |
iShares MSCI Global Metals & Mining Producers ETF |
iShares MSCI Emerging Markets ETF* |
iShares MSCI Global Silver and Metals Miners ETF |
iShares MSCI Emerging Markets Min Vol Factor ETF |
iShares MSCI Malaysia ETF |
iShares MSCI Emerging Markets Small-Cap ETF |
iShares MSCI South Korea ETF |
iShares MSCI Global Min Vol Factor ETF |
iShares MSCI Taiwan ETF |
Name (Year of Birth) |
Position |
Principal Occupation(s) During the Past 5 Years |
Other Directorships Held by Director |
Robert S. Kapito1 (1957) |
Director (since 2009). |
President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002). |
Director of BlackRock, Inc. (since 2006); Trustee of iShares Trust (since 2009); Trustee of iShares U.S. ETF Trust (since 2011). |
Salim Ramji2 (1970) |
Director (since 2019). |
Senior Managing Director, BlackRock, Inc. (since 2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2019); Head of BlackRock’s U.S. Wealth Advisory Business (2015-2019); Global Head of Corporate Strategy, BlackRock, Inc. (2014-2015); Senior Partner, McKinsey & Company (2010- 2014). |
Trustee of iShares Trust (since 2019); Trustee of iShares U.S. ETF Trust (since 2019). |
Name (Year of Birth) |
Position |
Principal Occupation(s) During the Past 5 Years |
Other Directorships Held by Director |
John E. Kerrigan (1955) |
Director (since 2005); Independent Board Chair (since 2022). |
Chief Investment Officer, Santa Clara University (since 2002). |
Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares Trust and iShares U.S. ETF Trust (since 2022). |
Jane D. Carlin (1956) |
Director (since 2015); Risk Committee Chair (since 2016). |
Consultant (since 2012); Member of the Audit Committee (2012-2018), Chair of the Nominating and Governance Committee (2017-2018) and Director of PHH Corporation (mortgage solutions) (2012-2018); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012). |
Trustee of iShares Trust (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Member of the Audit Committee (since 2016), Chair of the Audit Committee (since 2020) and Director of The Hanover Insurance Group, Inc. (since 2016). |
Richard L. Fagnani (1954) |
Director (since 2017); Audit Committee Chair (since 2019). |
Partner, KPMG LLP (2002-2016); Director of One Generation Away (since 2021). |
Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017). |
Name (Year of Birth) |
Position |
Principal Occupation(s) During the Past 5 Years |
Other Directorships Held by Director |
Cecilia H. Herbert (1949) |
Director (since 2005); Nominating and Governance and Equity Plus Committee Chairs (since 2022). |
Chair of the Finance Committee (since 2019) and Trustee and Member of the Finance, Audit and Quality Committees of Stanford Health Care (since 2016); Trustee of WNET, New York's public media company (since 2011) and Member of the Audit Committee (since 2018), Investment Committee (since 2011) and Personnel Committee (since 2022); Chair (1994-2005) and Member (1992-2021) of the Investment Committee, Archdiocese of San Francisco; Trustee of Forward Funds (14 portfolios) (2009-2018); Trustee of Salient MF Trust (4 portfolios) (2015-2018); Director (1998-2013) and President (2007- 2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006- 2010) of the Thacher School; Director of the Senior Center of Jackson Hole (since 2020); Director of the Jackson Hole Center for the Arts (since 2021); Member of the Wyoming State Investment Funds Committee (since 2022). |
Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011). |
Drew E. Lawton (1959) |
Director (since 2017); 15(c) Committee Chair (since 2017). |
Senior Managing Director of New York Life Insurance Company (2010- 2015). |
Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017); Director of Jackson Financial Inc. (since 2021). |
John E. Martinez (1961) |
Director (since 2003); Securities Lending Committee Chair (since 2019). |
Director of Real Estate Equity Exchange, Inc. (since 2005); Director of Cloudera Foundation (2017-2020); and Director of Reading Partners (2012-2016). |
Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011). |
Name (Year of Birth) |
Position |
Principal Occupation(s) During the Past 5 Years |
Other Directorships Held by Director |
Madhav V. Rajan (1964) |
Director (since 2011); Fixed Income Plus Committee Chair (since 2019). |
Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Advisory Board Member (since 2016) and Director (since 2020) of C.M. Capital Corporation; Chair of the Board for the Center for Research in Security Prices, LLC (since 2020); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010- 2016). |
Trustee of iShares Trust (since 2011); Trustee of iShares U.S. ETF Trust (since 2011). |
Name (Year of Birth) |
Position |
Principal Occupation(s) During the Past 5 Years |
Dominik Rohé (1973) |
President (since 2023). |
Managing Director, BlackRock, Inc. (since 2005); Head of Americas ETF and Index Investments (since 2023); Head of Latin America (2019-2023). |
Trent Walker (1974) |
Treasurer and Chief Financial Officer (since 2020). |
Managing Director of BlackRock, Inc. (since September 2019); Chief Financial Officer of iShares Delaware Trust Sponsor LLC, BlackRock Funds, BlackRock Funds II, BlackRock Funds IV, BlackRock Funds V and BlackRock Funds VI (since 2021); Executive Vice President of PIMCO (2016-2019); Senior Vice President of PIMCO (2008-2015); Treasurer (2013-2019) and Assistant Treasurer (2007-2017) of PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, 2 PIMCO-sponsored interval funds and 21 PIMCO- sponsored closed-end funds. |
Name (Year of Birth) |
Position |
Principal Occupation(s) During the Past 5 Years |
Charles Park (1967) |
Chief Compliance Officer (since 2006). |
Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2014); Chief Compliance Officer of BFA (since 2006). |
Marisa Rolland (1980) |
Secretary (since 2022). |
Managing Director, BlackRock, Inc. (since 2023); Director, BlackRock, Inc. (2018-2022); Vice President, BlackRock, Inc. (2010-2017). |
Rachel Aguirre (1982) |
Executive Vice President (since 2022). |
Managing Director, BlackRock, Inc. (since 2018); Director, BlackRock, Inc. (2009-2018); Head of U.S. iShares Product (since 2022); Head of EII U.S. Product Engineering (since 2021); Co-Head of EII’s Americas Portfolio Engineering (2020-2021); Head of Developed Markets Portfolio Engineering (2016-2019). |
Jennifer Hsui (1976) |
Executive Vice President (since 2022). |
Managing Director, BlackRock, Inc. (since 2009); Co-Head of Index Equity (since 2022). |
James Mauro (1970) |
Executive Vice President (since 2021). |
Managing Director, BlackRock, Inc. (since 2010); Head of Fixed Income Index Investments in the Americas and Head of San Francisco Core Portfolio Management (since 2020). |
Name |
Fund |
Dollar Range of Equity Securities in Named Fund |
Aggregate Dollar Range of Equity Securities in all Registered Investment Companies Overseen by Director in Family of Investment Companies |
Robert S. Kapito |
None |
None |
None |
|
|
|
|
Salim Ramji |
iShares Broad USD Investment Grade Corporate Bond ETF |
Over $100,000 |
Over $100,000 |
|
iShares Commodity Curve Carry Strategy ETF |
$50,001-$100,000 |
|
|
iShares Core Dividend Growth ETF |
Over $100,000 |
|
|
iShares Core MSCI Emerging Markets ETF |
Over $100,000 |
|
|
iShares Core MSCI Total International Stock ETF |
$1-$10,000 |
|
|
iShares Core S&P 500 ETF |
$1-$10,000 |
|
|
iShares Core S&P Mid-Cap ETF |
Over $100,000 |
|
|
iShares Core S&P Small-Cap ETF |
Over $100,000 |
|
|
iShares Core S&P Total U.S. Stock Market ETF |
$1-$10,000 |
|
|
iShares Expanded Tech Sector ETF |
$1-$10,000 |
|
|
iShares Expanded Tech-Software Sector ETF |
$1-$10,000 |
|
|
iShares GSCI Commodity Dynamic Roll Strategy ETF |
$50,001-$100,000 |
|
|
iShares MSCI USA ESG Select ETF |
$1-$10,000 |
|
|
iShares Robotics and Artificial Intelligence Multisector ETF |
$1-$10,000 |
|
|
iShares TIPS Bond ETF |
$50,001-$100,000 |
|
|
|
|
|
John E. Kerrigan |
iShares Core S&P 500 ETF |
Over $100,000 |
Over $100,000 |
Name |
Fund |
Dollar Range of Equity Securities in Named Fund |
Aggregate Dollar Range of Equity Securities in all Registered Investment Companies Overseen by Director in Family of Investment Companies |
|
iShares Core S&P Small-Cap ETF |
$50,001-$100,000 |
|
|
iShares ESG Advanced MSCI EAFE ETF |
$1-$10,000 |
|
|
iShares ESG Advanced MSCI USA ETF |
$10,001-$50,000 |
|
|
iShares ESG Aware MSCI EAFE ETF |
$10,001-$50,000 |
|
|
iShares ESG Aware MSCI EM ETF |
$50,001-$100,000 |
|
|
iShares ESG Aware MSCI USA ETF |
Over $100,000 |
|
|
iShares ESG Aware MSCI USA Small-Cap ETF |
$10,001-$50,000 |
|
|
iShares Exponential Technologies ETF |
Over $100,000 |
|
|
iShares Genomics Immunology and Healthcare ETF |
$10,001-$50,000 |
|
|
iShares Global Clean Energy ETF |
Over $100,000 |
|
|
iShares Global Infrastructure ETF |
Over $100,000 |
|
|
iShares Global Tech ETF |
$10,001-$50,000 |
|
|
iShares MSCI ACWI ex U.S. ETF |
Over $100,000 |
|
|
iShares MSCI EAFE Growth ETF |
Over $100,000 |
|
|
iShares MSCI EAFE Value ETF |
Over $100,000 |
|
|
iShares MSCI KLD 400 Social ETF |
$10,001-$50,000 |
|
|
iShares MSCI USA ESG Select ETF |
$1-$10,000 |
|
|
iShares MSCI USA Min Vol Factor ETF |
$10,001-$50,000 |
|
|
iShares MSCI USA Value Factor ETF |
$50,001-$100,000 |
|
|
iShares U.S. Energy ETF |
$10,001-$50,000 |
|
|
iShares U.S. Financial Services ETF |
$10,001-$50,000 |
|
|
|
|
|
Jane D. Carlin |
iShares Core MSCI EAFE ETF |
Over $100,000 |
Over $100,000 |
|
iShares Core MSCI Emerging Markets ETF |
Over $100,000 |
|
|
iShares Core S&P Mid-Cap ETF |
$10,001-$50,000 |
|
|
iShares Core S&P Small-Cap ETF |
Over $100,000 |
|
|
iShares Global Clean Energy ETF |
$10,001-$50,000 |
|
|
iShares MSCI ACWI ex U.S. ETF |
Over $100,000 |
|
|
iShares MSCI Global Metals & Mining Producers ETF |
$10,001-$50,000 |
|
|
iShares Select Dividend ETF |
$10,001-$50,000 |
|
|
|
|
|
Richard L. Fagnani |
iShares 0-5 Year TIPS Bond ETF |
$10,001-$50,000 |
Over $100,000 |
|
iShares China Large-Cap ETF |
$50,001-$100,000 |
|
|
iShares Core Dividend Growth ETF |
$10,001-$50,000 |
|
|
iShares Core S&P 500 ETF |
$50,001-$100,000 |
|
Name |
Fund |
Dollar Range of Equity Securities in Named Fund |
Aggregate Dollar Range of Equity Securities in all Registered Investment Companies Overseen by Director in Family of Investment Companies |
|
iShares Core U.S. REIT ETF |
$10,001-$50,000 |
|
|
iShares Exponential Technologies ETF |
$10,001-$50,000 |
|
|
iShares Global Clean Energy ETF |
$10,001-$50,000 |
|
|
iShares GSCI Commodity Dynamic Roll Strategy ETF |
$10,001-$50,000 |
|
|
iShares MSCI All Country Asia ex Japan ETF |
$10,001-$50,000 |
|
|
iShares MSCI Japan ETF |
$10,001-$50,000 |
|
|
iShares MSCI Singapore ETF |
$10,001-$50,000 |
|
|
iShares MSCI USA Equal Weighted ETF |
$10,001-$50,000 |
|
|
iShares MSCI USA Quality Factor ETF |
$10,001-$50,000 |
|
|
iShares Robotics and Artificial Intelligence Multisector ETF |
$10,001-$50,000 |
|
|
iShares TIPS Bond ETF |
$10,001-$50,000 |
|
|
iShares U.S. Infrastructure ETF |
$10,001-$50,000 |
|
|
iShares U.S. Regional Banks ETF |
$10,001-$50,000 |
|
|
|
|
|
Cecilia H. Herbert |
iShares California Muni Bond ETF |
Over $100,000 |
Over $100,000 |
|
iShares Core Dividend Growth ETF |
Over $100,000 |
|
|
iShares Core MSCI Emerging Markets ETF |
$1-$10,000 |
|
|
iShares Core MSCI Total International Stock ETF |
$10,001-$50,000 |
|
|
iShares Core S&P 500 ETF |
Over $100,000 |
|
|
iShares Core S&P U.S. Growth ETF |
Over $100,000 |
|
|
iShares Core S&P U.S. Value ETF |
Over $100,000 |
|
|
iShares iBoxx $ High Yield Corporate Bond ETF |
$10,001-$50,000 |
|
|
iShares International Select Dividend ETF |
$1-$10,000 |
|
|
iShares MSCI EAFE ETF |
$1-$10,000 |
|
|
iShares MSCI Japan ETF |
$10,001-$50,000 |
|
|
iShares MSCI USA Value Factor ETF |
Over $100,000 |
|
|
iShares National Muni Bond ETF |
$10,001-$50,000 |
|
|
iShares Preferred and Income Securities ETF |
$10,001-$50,000 |
|
|
|
|
|
Drew E. Lawton |
BlackRock Ultra Short-Term Bond ETF |
Over $100,000 |
Over $100,000 |
|
iShares 0-5 Year High Yield Corporate Bond ETF |
$50,001-$100,000 |
|
|
iShares Biotechnology ETF |
Over $100,000 |
|
|
iShares Core Dividend Growth ETF |
Over $100,000 |
|
|
iShares Core MSCI Total International Stock ETF |
Over $100,000 |
|
|
iShares Core S&P Total U.S. Stock Market ETF |
Over $100,000 |
|
Name |
Fund |
Dollar Range of Equity Securities in Named Fund |
Aggregate Dollar Range of Equity Securities in all Registered Investment Companies Overseen by Director in Family of Investment Companies |
|
iShares Expanded Tech Sector ETF |
Over $100,000 |
|
|
iShares Exponential Technologies ETF |
Over $100,000 |
|
|
iShares Global Financials ETF |
$10,001-$50,000 |
|
|
iShares U.S. Financial Services ETF |
Over $100,000 |
|
|
iShares U.S. Financials ETF |
$50,001-$100,000 |
|
|
iShares U.S. Healthcare ETF |
Over $100,000 |
|
|
|
|
|
John E. Martinez |
iShares 1-5 Year Investment Grade Corporate Bond ETF |
Over $100,000 |
Over $100,000 |
|
iShares Core MSCI International Developed Markets ETF |
$10,001-$50,000 |
|
|
iShares Core S&P 500 ETF |
Over $100,000 |
|
|
iShares Core S&P Small-Cap ETF |
Over $100,000 |
|
|
iShares Core S&P Total U.S. Stock Market ETF |
Over $100,000 |
|
|
iShares Global Consumer Staples ETF |
Over $100,000 |
|
|
iShares Russell 1000 ETF |
Over $100,000 |
|
|
iShares Russell 1000 Value ETF |
Over $100,000 |
|
|
iShares Russell 2000 ETF |
Over $100,000 |
|
|
|
|
|
Madhav V. Rajan |
None |
None |
None |
Name |
iShares Core MSCI Emerging Markets ETF |
iShares Emerging Markets Equity Factor ETF |
iShares ESG Aware MSCI EM ETF |
iShares Frontier and Select EM ETF |
Independent Directors: |
|
|
|
|
|
|
|
|
|
Jane D. Carlin |
$0 |
$179 |
$910 |
$76 |
Richard L. Fagnani |
1,069 |
181 |
920 |
76 |
Cecilia H. Herbert |
0 |
189 |
960 |
80 |
John E. Kerrigan |
0 |
193 |
980 |
81 |
Drew E. Lawton |
1,069 |
176 |
889 |
74 |
John E. Martinez |
0 |
176 |
889 |
74 |
Madhav V. Rajan |
0 |
176 |
889 |
74 |
|
|
|
|
|
Interested Directors: |
|
|
|
|
|
|
|
|
|
Robert S. Kapito |
$0 |
$0 |
$0 |
$0 |
Salim Ramji |
$0 |
$0 |
$0 |
$0 |
Name |
iShares MSCI Agriculture Producers ETF |
iShares MSCI Brazil ETF |
iShares MSCI BIC ETF |
iShares MSCI Chile ETF |
Independent Directors: |
|
|
|
|
|
|
|
|
|
Jane D. Carlin |
$62 |
$1,133 |
$20 |
$106 |
Richard L. Fagnani |
63 |
1,146 |
1,089 |
107 |
Cecilia H. Herbert |
66 |
1,196 |
21 |
112 |
John E. Kerrigan |
67 |
1,221 |
21 |
114 |
Drew E. Lawton |
61 |
1,108 |
1,089 |
104 |
John E. Martinez |
61 |
1,108 |
19 |
104 |
Madhav V. Rajan |
61 |
1,108 |
19 |
104 |
|
|
|
|
|
Interested Directors: |
|
|
|
|
|
|
|
|
|
Robert S. Kapito |
$0 |
$0 |
$0 |
$0 |
Salim Ramji |
$0 |
$0 |
$0 |
$0 |
Name |
iShares MSCI Emerging Markets Asia ETF |
iShares MSCI Emerging Markets ETF |
iShares MSCI Emerging Markets Min Vol Factor ETF |
iShares MSCI Emerging Markets Small-Cap ETF |
Independent Directors: |
|
|
|
|
|
|
|
|
|
Jane D. Carlin |
$125 |
$5,384 |
$1,320 |
$0 |
Richard L. Fagnani |
1,195 |
6,513 |
2,404 |
1,069 |
Cecilia H. Herbert |
132 |
5,683 |
1,393 |
0 |
John E. Kerrigan |
134 |
5,803 |
1,423 |
0 |
Drew E. Lawton |
1,191 |
6,334 |
2,360 |
1,069 |
John E. Martinez |
122 |
5,264 |
1,291 |
0 |
Madhav V. Rajan |
122 |
5,264 |
1,291 |
0 |
|
|
|
|
|
Interested Directors: |
|
|
|
|
|
|
|
|
|
Robert S. Kapito |
$0 |
$0 |
$0 |
$0 |
Salim Ramji |
$0 |
$0 |
$0 |
$0 |
Name |
iShares MSCI Global Energy Producers ETF |
iShares MSCI Global Gold Miners ETF |
iShares MSCI Global Metals & Mining Producers ETF |
iShares MSCI Global Min Vol Factor ETF |
Independent Directors: |
|
|
|
|
|
|
|
|
|
Jane D. Carlin |
$26 |
$78 |
$264 |
$937 |
Richard L. Fagnani |
27 |
79 |
267 |
947 |
Cecilia H. Herbert |
28 |
82 |
279 |
989 |
John E. Kerrigan |
28 |
84 |
285 |
1,010 |
Drew E. Lawton |
26 |
76 |
258 |
916 |
John E. Martinez |
26 |
76 |
258 |
916 |
Madhav V. Rajan |
26 |
76 |
258 |
916 |
|
|
|
|
|
Interested Directors: |
|
|
|
|
|
|
|
|
|
Robert S. Kapito |
$0 |
$0 |
$0 |
$0 |
Salim Ramji |
$0 |
$0 |
$0 |
$0 |
Name |
iShares MSCI Global Silver and Metals Miners ETF |
iShares MSCI Malaysia ETF |
iShares MSCI South Korea ETF |
iShares MSCI Taiwan ETF |
Independent Directors: |
|
|
|
|
|
|
|
|
|
Jane D. Carlin |
$34 |
$51 |
$633 |
$812 |
Richard L. Fagnani |
34 |
51 |
640 |
821 |
Cecilia H. Herbert |
35 |
54 |
668 |
857 |
John E. Kerrigan |
36 |
55 |
682 |
875 |
Drew E. Lawton |
33 |
50 |
619 |
794 |
John E. Martinez |
33 |
50 |
619 |
794 |
Madhav V. Rajan |
33 |
50 |
619 |
794 |
|
|
|
|
|
Interested Directors: |
|
|
|
|
|
|
|
|
|
Robert S. Kapito |
$0 |
$0 |
$0 |
$0 |
Salim Ramji |
$0 |
$0 |
$0 |
$0 |
Name |
Pension or Retirement Benefits Accrued As Part of Company Expenses1 |
Estimated Annual Benefits Upon Retirement1 |
Total Compensation From the Funds and Fund Complex2 |
Independent Directors: |
|
|
|
|
|
|
|
Jane D. Carlin |
Not Applicable |
Not Applicable |
$420,000 |
Richard L. Fagnani |
Not Applicable |
Not Applicable |
446,764 |
Cecilia H. Herbert |
Not Applicable |
Not Applicable |
475,000 |
John E. Kerrigan |
Not Applicable |
Not Applicable |
445,000 |
Drew E. Lawton |
Not Applicable |
Not Applicable |
431,764 |
John E. Martinez |
Not Applicable |
Not Applicable |
420,000 |
Madhav V. Rajan |
Not Applicable |
Not Applicable |
420,000 |
|
|
|
|
Interested Directors: |
|
|
|
|
|
|
|
Robert S. Kapito |
Not Applicable |
Not Applicable |
$0 |
Name |
Pension or Retirement Benefits Accrued As Part of Company Expenses1 |
Estimated Annual Benefits Upon Retirement1 |
Total Compensation From the Funds and Fund Complex2 |
Salim Ramji |
Not Applicable |
Not Applicable |
0 |
Fund |
Name |
Percentage of Ownership |
iShares Core MSCI Emerging Markets ETF |
National Financial Services LLC 499 Washington Blvd Jersey City, NJ 07310 |
10.22 % |
|
Merrill Lynch, Pierce, Fenner & Smith Incorporated - TS Sub 101 Hudson Street 9th Floor Jersey City, NJ 07302-3997 |
9.77 % |
|
Charles Schwab & Co., Inc. 101 Montgomery Street San Francisco, CA 94014 |
9.01 % |
|
The Bank of New York Mellon 111 Sanders Creek Parkway 2nd Floor East Syracuse, NY 13057 |
6.53 % |
|
Morgan Stanley Smith Barney LLC One New York Plaza New York, NY 10004 |
5.49 % |
|
Northern Trust Company (The) 801 South Canal Street Chicago, IL 60607 |
5.27 % |
|
State Street Bank and Trust Company 1776 Heritage Drive North Quincy, MA 02171 |
5.20 % |
|
|
|
iShares Emerging Markets Equity Factor ETF |
Charles Schwab & Co., Inc. 101 Montgomery Street San Francisco, CA 94014 |
32.26 % |
|
TD Ameritrade Clearing, Inc. 4700 Alliance Gateway Freeway Fort Worth, TX 76177 |
25.07 % |
Fund |
Name |
Percentage of Ownership |
|
National Financial Services LLC 499 Washington Blvd Jersey City, NJ 07310 |
13.43 % |
|
|
|
iShares ESG Aware MSCI EM ETF |
Merrill Lynch, Pierce, Fenner & Smith Incorporated - TS Sub 101 Hudson Street 9th Floor Jersey City, NJ 07302-3997 |
11.20 % |
|
Pershing LLC One Pershing Plaza Jersey City, NJ 07399 |
11.19 % |
|
Charles Schwab & Co., Inc. 101 Montgomery Street San Francisco, CA 94014 |
9.38 % |
|
National Financial Services LLC 499 Washington Blvd Jersey City, NJ 07310 |
8.91 % |
|
Ameriprise Enterprise Investment Services, Inc. 901 3rd Avenue South Minneapolis, MN 55474 |
5.73 % |
|
JPMorgan Chase Bank, National Association 1111 Polaris Parkway Columbus, OH 43240 |
5.25 % |
|
Northern Trust Company (The) 801 South Canal Street Chicago, IL 60607 |
5.07 % |
|
|
|
iShares Frontier and Select EM ETF |
Charles Schwab & Co., Inc. 101 Montgomery Street San Francisco, CA 94014 |
14.36 % |
|
National Financial Services LLC 499 Washington Blvd Jersey City, NJ 07310 |
12.02 % |
|
JPMorgan Chase Bank, National Association 1111 Polaris Parkway Columbus, OH 43240 |
11.05 % |
|
Interactive Brokers Retail Equity Clearing 8 Greenwich Office Park Greenwich, CT 06831 |
10.87 % |
|
TD Ameritrade Clearing, Inc. 4700 Alliance Gateway Freeway Fort Worth, TX 76177 |
7.33 % |
|
Citibank, N.A. 3800 CitiBank Center Tampa Building B/1st Floor Zone 8 Tampa, FL 33610-9122 |
5.13 % |
|
|
|
iShares MSCI Agriculture Producers ETF |
National Financial Services LLC 499 Washington Blvd Jersey City, NJ 07310 |
14.65 % |
Fund |
Name |
Percentage of Ownership |
|
Charles Schwab & Co., Inc. 101 Montgomery Street San Francisco, CA 94014 |
14.56 % |
|
Citibank, N.A. 3800 CitiBank Center Tampa Building B/1st Floor Zone 8 Tampa, FL 33610-9122 |
12.33 % |
|
Brown Brothers Harriman & Co. 525 Washington Blvd. 11th Floor Jersey City, NJ 07310 |
8.93 % |
|
Morgan Stanley Smith Barney LLC One New York Plaza New York, NY 10004 |
6.54 % |
|
|
|
iShares MSCI Brazil ETF |
Brown Brothers Harriman & Co. 525 Washington Blvd. 11th Floor Jersey City, NJ 07310 |
16.07 % |
|
Citibank, N.A. 3800 CitiBank Center Tampa Building B/1st Floor Zone 8 Tampa, FL 33610-9122 |
10.28 % |
|
BofA Securities, Inc. One Bryant Park New York, NY 10036 |
7.38 % |
|
The Bank of New York Mellon 111 Sanders Creek Parkway 2nd Floor East Syracuse, NY 13057 |
7.24 % |
|
Goldman, Sachs & Co. 30 Hudson Street 16th Floor Jersey City, NJ 07302 |
6.65 % |
|
State Street Bank and Trust Company 1776 Heritage Drive North Quincy, MA 02171 |
6.53 % |
|
|
|
iShares MSCI BIC ETF |
National Financial Services LLC 499 Washington Blvd Jersey City, NJ 07310 |
11.49 % |
|
Citibank, N.A. S.D. Indeval Institucion 3800 CitiBank Center Tampa Building B/1st Floor Zone 8 Tampa, FL 33610-9122 |
10.65 % |
|
The Bank of New York Mellon 111 Sanders Creek Parkway 2nd Floor East Syracuse, NY 13057 |
7.45 % |
Fund |
Name |
Percentage of Ownership |
|
Charles Schwab & Co., Inc. 101 Montgomery Street San Francisco, CA 94014 |
6.60 % |
|
JPMorgan Chase Bank, National Association 1111 Polaris Parkway Columbus, OH 43240 |
6.51 % |
|
J.P. Morgan Securities, LLC/JPMC 383 Madison Avenue New York, NY 10179 |
5.78 % |
|
TD Ameritrade Clearing, Inc. 4700 Alliance Gateway Freeway Fort Worth, TX 76177 |
5.55 % |
|
|
|
iShares MSCI Chile ETF |
Brown Brothers Harriman & Co. 525 Washington Blvd. 11th Floor Jersey City, NJ 07310 |
28.20 % |
|
Citibank, N.A. 3800 CitiBank Center Tampa Building B/1st Floor Zone 8 Tampa, FL 33610-9122 |
7.07 % |
|
State Street Bank and Trust Company 1776 Heritage Drive North Quincy, MA 02171 |
6.60 % |
|
The Bank of New York Mellon 111 Sanders Creek Parkway 2nd Floor East Syracuse, NY 13057 |
6.22 % |
|
Charles Schwab & Co., Inc. 101 Montgomery Street San Francisco, CA 94014 |
5.67 % |
|
|
|
iShares MSCI Emerging Markets Asia ETF |
Charles Schwab & Co., Inc. 101 Montgomery Street San Francisco, CA 94014 |
12.06 % |
|
Citibank, N.A. 3800 CitiBank Center Tampa Building B/1st Floor Zone 8 Tampa, FL 33610-9122 |
9.76 % |
|
Brown Brothers Harriman & Co. 525 Washington Blvd. 11th Floor Jersey City, NJ 07310 |
8.26 % |
|
RBC Capital Markets, LLC 3 World Financial Center 200 Vesey Street New York, NY 10281-8098 |
8.09 % |
|
Pershing LLC One Pershing Plaza Jersey City, NJ 07399 |
8.01 % |
Fund |
Name |
Percentage of Ownership |
|
The Bank of New York Mellon 111 Sanders Creek Parkway 2nd Floor East Syracuse, NY 13057 |
6.77 % |
|
National Financial Services LLC 499 Washington Blvd Jersey City, NJ 07310 |
5.52 % |
|
|
|
iShares MSCI Emerging Markets ETF |
JPMorgan Chase Bank 383 Madison Avenue New York, NY 10179 |
9.18 % |
|
National Financial Services LLC 499 Washington Blvd Jersey City, NJ 07310 |
7.25 % |
|
Charles Schwab & Co., Inc. 101 Montgomery Street San Francisco, CA 94014 |
6.59 % |
|
The Bank of New York Mellon 111 Sanders Creek Parkway 2nd Floor East Syracuse, NY 13057 |
5.79 % |
|
JPMorgan Chase Bank, National Association 1111 Polaris Parkway Columbus, OH 43240 |
5.50 % |
|
|
|
iShares MSCI Emerging Markets Min Vol Factor ETF |
National Financial Services LLC 499 Washington Blvd Jersey City, NJ 07310 |
21.85 % |
|
Merrill Lynch, Pierce, Fenner & Smith Incorporated - TS Sub 101 Hudson Street 9th Floor Jersey City, NJ 07302-3997 |
17.95 % |
|
CDS Clearing and Depository Services Inc. 600 De Maisonneuve Blvd W Suite 210 Montreal, QC H3A 3J2 |
8.47 % |
|
Charles Schwab & Co., Inc. 101 Montgomery Street San Francisco, CA 94014 |
8.25 % |
|
Pershing LLC One Pershing Plaza Jersey City, NJ 07399 |
7.60 % |
|
TD Ameritrade Clearing, Inc. 4700 Alliance Gateway Freeway Fort Worth, TX 76177 |
5.32 % |
|
|
|
iShares MSCI Emerging Markets Small-Cap ETF |
Citibank, N.A. 3800 CitiBank Center Tampa Building B/1st Floor Zone 8 Tampa, FL 33610-9122 |
22.34 % |
Fund |
Name |
Percentage of Ownership |
|
National Financial Services LLC 499 Washington Blvd Jersey City, NJ 07310 |
22.09 % |
|
Charles Schwab & Co., Inc. 101 Montgomery Street San Francisco, CA 94014 |
19.24 % |
|
JPMorgan Chase Bank 383 Madison Avenue New York, NY 10179 |
8.20 % |
|
|
|
iShares MSCI Global Energy Producers ETF |
State Street Bank and Trust Company 1776 Heritage Drive North Quincy, MA 02171 |
14.57 % |
|
National Financial Services LLC 499 Washington Blvd Jersey City, NJ 07310 |
14.35 % |
|
Charles Schwab & Co., Inc. 101 Montgomery Street San Francisco, CA 94014 |
11.98 % |
|
TD Ameritrade Clearing, Inc. 4700 Alliance Gateway Freeway Fort Worth, TX 76177 |
9.50 % |
|
Pershing LLC One Pershing Plaza Jersey City, NJ 07399 |
7.79 % |
|
LPL Financial Corporation 9785 Towne Centre Drive San Diego, CA 92121-1968 |
6.74 % |
|
|
|
iShares MSCI Global Gold Miners ETF |
The Bank of New York Mellon 111 Sanders Creek Parkway 2nd Floor East Syracuse, NY 13057 |
21.16 % |
|
National Financial Services LLC 499 Washington Blvd Jersey City, NJ 07310 |
17.31 % |
|
Charles Schwab & Co., Inc. 101 Montgomery Street San Francisco, CA 94014 |
8.27 % |
|
HSBC Bank USA, NA/Clearing 452 Fifth Avenue New York, NY 10018 |
6.66 % |
|
TD Ameritrade Clearing, Inc. 4700 Alliance Gateway Freeway Fort Worth, TX 76177 |
5.36 % |
|
|
|
iShares MSCI Global Metals & Mining Producers ETF |
National Financial Services LLC 499 Washington Blvd Jersey City, NJ 07310 |
12.63 % |
Fund |
Name |
Percentage of Ownership |
|
The Bank of New York Mellon 111 Sanders Creek Parkway 2nd Floor East Syracuse, NY 13057 |
10.83 % |
|
Charles Schwab & Co., Inc. 101 Montgomery Street San Francisco, CA 94014 |
9.07 % |
|
Brown Brothers Harriman & Co. 525 Washington Blvd. 11th Floor Jersey City, NJ 07310 |
8.84 % |
|
State Street Bank and Trust Company 1776 Heritage Drive North Quincy, MA 02171 |
8.18 % |
|
TD Ameritrade Clearing, Inc. 4700 Alliance Gateway Freeway Fort Worth, TX 76177 |
7.96 % |
|
Citibank, N.A. 3800 CitiBank Center Tampa Building B/1st Floor Zone 8 Tampa, FL 33610-9122 |
6.76 % |
|
|
|
iShares MSCI Global Min Vol Factor ETF |
Charles Schwab & Co., Inc. 101 Montgomery Street San Francisco, CA 94014 |
18.42 % |
|
JPMorgan Chase Bank, National Association 1111 Polaris Parkway Columbus, OH 43240 |
12.06 % |
|
State Street Bank and Trust Company 1776 Heritage Drive North Quincy, MA 02171 |
11.48 % |
|
National Financial Services LLC 499 Washington Blvd Jersey City, NJ 07310 |
8.32 % |
|
|
|
iShares MSCI Global Silver and Metals Miners ETF |
National Financial Services LLC 499 Washington Blvd Jersey City, NJ 07310 |
22.98 % |
|
Citibank, N.A. 3800 CitiBank Center Tampa Building B/1st Floor Zone 8 Tampa, FL 33610-9122 |
12.71 % |
|
Charles Schwab & Co., Inc. 101 Montgomery Street San Francisco, CA 94014 |
10.72 % |
|
TD Ameritrade Clearing, Inc. 4700 Alliance Gateway Freeway Fort Worth, TX 76177 |
8.37 % |
|
VANGUARD Marketing Corporation 100 Vanguard Boulevard Malvern, PA 19355 |
6.26 % |
Fund |
Name |
Percentage of Ownership |
|
|
|
iShares MSCI Malaysia ETF |
State Street Bank and Trust Company 1776 Heritage Drive North Quincy, MA 02171 |
23.53 % |
|
JPMorgan Chase Bank, National Association 1111 Polaris Parkway Columbus, OH 43240 |
17.32 % |
|
Charles Schwab & Co., Inc. 101 Montgomery Street San Francisco, CA 94014 |
6.41 % |
|
Citibank, N.A. 3800 CitiBank Center Tampa Building B/1st Floor Zone 8 Tampa, FL 33610-9122 |
5.42 % |
|
National Financial Services LLC 499 Washington Blvd Jersey City, NJ 07310 |
5.01 % |
|
|
|
iShares MSCI South Korea ETF |
Citibank, N.A. 3800 CitiBank Center Tampa Building B/1st Floor Zone 8 Tampa, FL 33610-9122 |
33.38 % |
|
State Street Bank and Trust Company 1776 Heritage Drive North Quincy, MA 02171 |
17.09 % |
|
Brown Brothers Harriman & Co. 525 Washington Blvd. 11th Floor Jersey City, NJ 07310 |
10.65 % |
|
JPMorgan Chase Bank, National Association 1111 Polaris Parkway Columbus, OH 43240 |
5.87 % |
|
|
|
iShares MSCI Taiwan ETF |
State Street Bank and Trust Company 1776 Heritage Drive North Quincy, MA 02171 |
32.34 % |
|
Northern Trust Company/ United Nations Joint Staff Pension Fund 50 South LaSalle Street Chicago, IL 60675 |
12.84 % |
|
The Bank of New York Mellon 111 Sanders Creek Parkway 2nd Floor East Syracuse, NY 13057 |
7.88 % |
|
Citibank, N.A. 3800 CitiBank Center Tampa Building B/1st Floor Zone 8 Tampa, FL 33610-9122 |
7.52 % |
|
JPMorgan Chase Bank, National Association 1111 Polaris Parkway Columbus, OH 43240 |
6.08 % |
Fund |
Name |
Percentage of Ownership |
|
Brown Brothers Harriman & Co. 525 Washington Blvd. 11th Floor Jersey City, NJ 07310 |
5.57 % |
Fund |
Management Fee for the Fiscal Year Ended August 31, 2022 |
Fund Inception Date |
Management Fees Paid Net of Waivers for Fiscal Year Ended August 31, 2022 |
Management Fees Paid Net of Waivers for Fiscal Year Ended August 31, 2021 |
Management Fees Paid Net of Waivers for Fiscal Year Ended August 31, 2020 |
iShares Core MSCI Emerging Markets ETF1,2 |
0.10% |
10/18/12 |
$74,201,579 |
$82,545,766 |
$70,476,122 |
iShares Emerging Markets Equity Factor ETF3,4 |
0.45% |
12/08/15 |
3,807,137 |
3,067,019 |
2,070,774 |
iShares ESG Aware MSCI EM ETF |
0.25% |
06/28/16 |
14,835,323 |
16,050,999 |
4,984,228 |
iShares Frontier and Select EM ETF |
0.79% |
09/12/12 |
3,629,532 |
3,409,730 |
3,404,850 |
iShares MSCI Agriculture Producers ETF5 |
0.39% |
01/31/12 |
657,066 |
225,951 |
93,125 |
iShares MSCI Brazil ETF |
0.58% |
07/10/00 |
30,544,859 |
33,789,061 |
43,908,323 |
iShares MSCI BIC ETF |
0.69% |
11/12/07 |
821,384 |
1,281,064 |
1,178,749 |
iShares MSCI Chile ETF |
0.58% |
11/12/07 |
2,645,666 |
2,681,512 |
2,423,582 |
iShares MSCI Emerging Markets Asia ETF |
0.49% |
02/08/12 |
3,671,287 |
4,001,164 |
2,314,189 |
iShares MSCI Emerging Markets ETF |
0.69% |
04/07/03 |
194,187,377 |
198,629,100 |
172,140,562 |
iShares MSCI Emerging Markets Min Vol Factor ETF6 |
0.69% |
10/18/11 |
10,778,268 |
9,943,172 |
11,778,604 |
iShares MSCI Emerging Markets Small-Cap ETF |
0.69% |
08/16/11 |
2,572,626 |
2,042,613 |
1,358,678 |
iShares MSCI Global Energy Producers ETF |
0.39% |
01/31/12 |
415,723 |
246,391 |
171,388 |
iShares MSCI Global Gold Miners ETF |
0.39% |
01/31/12 |
1,928,455 |
1,985,781 |
1,457,942 |
iShares MSCI Global Metals & Mining Producers ETF7 |
0.39% |
01/31/12 |
4,995,637 |
3,232,237 |
802,532 |
iShares MSCI Global Min Vol Factor ETF8 |
0.32% |
10/18/11 |
9,951,040 |
10,992,821 |
11,099,442 |
iShares MSCI Global Silver and Metals Miners ETF |
0.39% |
01/31/12 |
903,732 |
1,064,033 |
460,309 |
iShares MSCI Malaysia ETF |
0.50% |
03/12/96 |
1,274,694 |
1,619,334 |
1,937,654 |
iShares MSCI South Korea ETF |
0.58% |
05/09/00 |
24,851,293 |
37,571,205 |
25,182,549 |
iShares MSCI Taiwan ETF |
0.58% |
06/20/00 |
36,042,811 |
34,918,823 |
20,347,753 |
Jennifer Hsui |
|
|
Types of Accounts |
Number |
Total Assets |
Registered Investment Companies |
302 |
$1,635,830,000,000 |
Other Pooled Investment Vehicles |
2 |
4,096,000,000 |
Other Accounts |
19 |
29,732,000,000 |
Greg Savage |
|
|
Types of Accounts |
Number |
Total Assets |
Registered Investment Companies |
256 |
$1,551,867,000,000 |
Other Pooled Investment Vehicles |
33 |
9,050,000,000 |
Other Accounts |
57 |
4,260,000,000 |
Paul Whitehead |
|
|
Types of Accounts |
Number |
Total Assets |
Registered Investment Companies |
281 |
$1,546,882,000,000 |
Paul Whitehead |
|
|
Types of Accounts |
Number |
Total Assets |
Other Pooled Investment Vehicles |
2 |
5,570,000,000 |
Other Accounts |
5 |
3,981,000,000 |
Jennifer Hsui |
|
|
Types of Accounts |
Number of Other Accounts with Performance Fees Managed by Portfolio Manager |
Aggregate of Total Assets |
Registered Investment Companies |
0 |
N/A |
Other Pooled Investment Vehicles |
0 |
N/A |
Other Accounts |
0 |
N/A |
Greg Savage |
|
|
Types of Accounts |
Number of Other Accounts with Performance Fees Managed by Portfolio Manager |
Aggregate of Total Assets |
Registered Investment Companies |
0 |
N/A |
Other Pooled Investment Vehicles |
0 |
N/A |
Other Accounts |
0 |
N/A |
Paul Whitehead |
|
|
Types of Accounts |
Number of Other Accounts with Performance Fees Managed by Portfolio Manager |
Aggregate of Total Assets |
Registered Investment Companies |
0 |
N/A |
Other Pooled Investment Vehicles |
0 |
N/A |
Other Accounts |
0 |
N/A |
Jennifer Hsui |
|
|
|
|
|
|
|
|
Dollar Range | ||||||
Fund |
None |
$1 to $10k |
$10,001 to $50k |
$50,001 to $100k |
$100,001 to $500k |
$500,001 to $1m |
over $1m |
iShares Core MSCI Emerging Markets ETF |
|
|
|
X |
|
|
|
iShares Emerging Markets Equity Factor ETF |
X |
|
|
|
|
|
|
iShares ESG Aware MSCI EM ETF |
|
|
X |
|
|
|
|
iShares Frontier and Select EM ETF |
|
X |
|
|
|
|
|
iShares MSCI Agriculture Producers ETF |
X |
|
|
|
|
|
|
iShares MSCI Brazil ETF |
X |
|
|
|
|
|
|
iShares MSCI BIC ETF |
X |
|
|
|
|
|
|
iShares MSCI Chile ETF |
X |
|
|
|
|
|
|
iShares MSCI Emerging Markets Asia ETF |
X |
|
|
|
|
|
|
iShares MSCI Emerging Markets ETF |
|
X |
|
|
|
|
|
iShares MSCI Emerging Markets Min Vol Factor ETF |
X |
|
|
|
|
|
|
iShares MSCI Emerging Markets Small-Cap ETF |
X |
|
|
|
|
|
|
iShares MSCI Global Energy Producers ETF |
X |
|
|
|
|
|
|
iShares MSCI Global Gold Miners ETF |
X |
|
|
|
|
|
|
iShares MSCI Global Metals & Mining Producers ETF |
X |
|
|
|
|
|
|
Jennifer Hsui |
|
|
|
|
|
|
|
|
Dollar Range | ||||||
Fund |
None |
$1 to $10k |
$10,001 to $50k |
$50,001 to $100k |
$100,001 to $500k |
$500,001 to $1m |
over $1m |
iShares MSCI Global Min Vol Factor ETF |
X |
|
|
|
|
|
|
iShares MSCI Global Silver and Metals Miners ETF |
X |
|
|
|
|
|
|
iShares MSCI Malaysia ETF |
X |
|
|
|
|
|
|
iShares MSCI South Korea ETF |
X |
|
|
|
|
|
|
iShares MSCI Taiwan ETF |
X |
|
|
|
|
|
|
Greg Savage |
|
|
|
|
|
|
|
|
Dollar Range | ||||||
Fund |
None |
$1 to $10k |
$10,001 to $50k |
$50,001 to $100k |
$100,001 to $500k |
$500,001 to $1m |
over $1m |
iShares Core MSCI Emerging Markets ETF |
X |
|
|
|
|
|
|
iShares Emerging Markets Equity Factor ETF |
X |
|
|
|
|
|
|
iShares ESG Aware MSCI EM ETF |
X |
|
|
|
|
|
|
iShares Frontier and Select EM ETF |
X |
|
|
|
|
|
|
iShares MSCI Agriculture Producers ETF |
X |
|
|
|
|
|
|
iShares MSCI Brazil ETF |
X |
|
|
|
|
|
|
iShares MSCI BIC ETF |
X |
|
|
|
|
|
|
iShares MSCI Chile ETF |
X |
|
|
|
|
|
|
iShares MSCI Emerging Markets Asia ETF |
X |
|
|
|
|
|
|
iShares MSCI Emerging Markets ETF |
X |
|
|
|
|
|
|
iShares MSCI Emerging Markets Min Vol Factor ETF |
X |
|
|
|
|
|
|
iShares MSCI Emerging Markets Small-Cap ETF |
X |
|
|
|
|
|
|
iShares MSCI Global Energy Producers ETF |
X |
|
|
|
|
|
|
iShares MSCI Global Gold Miners ETF |
X |
|
|
|
|
|
|
iShares MSCI Global Metals & Mining Producers ETF |
X |
|
|
|
|
|
|
iShares MSCI Global Min Vol Factor ETF |
X |
|
|
|
|
|
|
iShares MSCI Global Silver and Metals Miners ETF |
X |
|
|
|
|
|
|
iShares MSCI Malaysia ETF |
X |
|
|
|
|
|
|
iShares MSCI South Korea ETF |
X |
|
|
|
|
|
|
iShares MSCI Taiwan ETF |
X |
|
|
|
|
|
|
Paul Whitehead |
|
|
|
|
|
|
|
|
Dollar Range | ||||||
Fund |
None |
$1 to $10k |
$10,001 to $50k |
$50,001 to $100k |
$100,001 to $500k |
$500,001 to $1m |
over $1m |
iShares Core MSCI Emerging Markets ETF |
X |
|
|
|
|
|
|
iShares Emerging Markets Equity Factor ETF |
X |
|
|
|
|
|
|
iShares ESG Aware MSCI EM ETF |
X |
|
|
|
|
|
|
iShares Frontier and Select EM ETF |
X |
|
|
|
|
|
|
iShares MSCI Agriculture Producers ETF |
X |
|
|
|
|
|
|
iShares MSCI Brazil ETF |
X |
|
|
|
|
|
|
iShares MSCI BIC ETF |
X |
|
|
|
|
|
|
iShares MSCI Chile ETF |
X |
|
|
|
|
|
|
Paul Whitehead |
|
|
|
|
|
|
|
|
Dollar Range | ||||||
Fund |
None |
$1 to $10k |
$10,001 to $50k |
$50,001 to $100k |
$100,001 to $500k |
$500,001 to $1m |
over $1m |
iShares MSCI Emerging Markets Asia ETF |
X |
|
|
|
|
|
|
iShares MSCI Emerging Markets ETF |
X |
|
|
|
|
|
|
iShares MSCI Emerging Markets Min Vol Factor ETF |
X |
|
|
|
|
|
|
iShares MSCI Emerging Markets Small-Cap ETF |
X |
|
|
|
|
|
|
iShares MSCI Global Energy Producers ETF |
X |
|
|
|
|
|
|
iShares MSCI Global Gold Miners ETF |
X |
|
|
|
|
|
|
iShares MSCI Global Metals & Mining Producers ETF |
X |
|
|
|
|
|
|
iShares MSCI Global Min Vol Factor ETF |
X |
|
|
|
|
|
|
iShares MSCI Global Silver and Metals Miners ETF |
X |
|
|
|
|
|
|
iShares MSCI Malaysia ETF |
X |
|
|
|
|
|
|
iShares MSCI South Korea ETF |
X |
|
|
|
|
|
|
iShares MSCI Taiwan ETF |
X |
|
|
|
|
|
|
Fund |
Fund Inception Date |
Administration, Custodian, Transfer Agency Expenses Paid During Fiscal Year Ended August 31, 2022 |
Administration, Custodian, Transfer Agency Expenses Paid During Fiscal Year Ended August 31, 2021 |
Administration, Custodian, Transfer Agency Expenses Paid During Fiscal Year Ended August 31, 2020 |
iShares Core MSCI Emerging Markets ETF |
10/18/12 |
$31,565,103 |
$28,905,865 |
$21,065,712 |
iShares Emerging Markets Equity Factor ETF |
12/08/15 |
567,115 |
408,457 |
285,132 |
iShares ESG Aware MSCI EM ETF |
06/28/16 |
2,712,986 |
2,781,551 |
907,519 |
iShares Frontier and Select EM ETF |
09/12/12 |
1,332,758 |
1,644,072 |
1,916,655 |
iShares MSCI Agriculture Producers ETF |
01/31/12 |
79,084 |
45,096 |
35,507 |
iShares MSCI Brazil ETF |
07/10/00 |
909,953 |
1,047,533 |
1,318,270 |
iShares MSCI BIC ETF |
11/12/07 |
81,819 |
137,062 |
80,529 |
iShares MSCI Chile ETF |
11/12/07 |
924,354 |
974,157 |
851,810 |
iShares MSCI Emerging Markets Asia ETF |
02/08/12 |
230,256 |
240,516 |
105,071 |
iShares MSCI Emerging Markets ETF |
04/07/03 |
13,495,914 |
11,473,731 |
9,535,463 |
iShares MSCI Emerging Markets Min Vol Factor ETF |
10/18/11 |
4,031,215 |
3,124,974 |
3,021,472 |
iShares MSCI Emerging Markets Small-Cap ETF |
08/16/11 |
302,794 |
292,160 |
198,620 |
iShares MSCI Global Energy Producers ETF |
01/31/12 |
51,005 |
47,901 |
47,422 |
iShares MSCI Global Gold Miners ETF |
01/31/12 |
57,512 |
50,147 |
43,741 |
iShares MSCI Global Metals & Mining Producers ETF |
01/31/12 |
240,229 |
186,044 |
82,999 |
iShares MSCI Global Min Vol Factor ETF |
10/18/11 |
810,920 |
893,842 |
718,851 |
iShares MSCI Global Silver and Metals Miners ETF |
01/31/12 |
32,712 |
36,216 |
31,260 |
iShares MSCI Malaysia ETF |
03/12/96 |
100,231 |
134,960 |
159,848 |
iShares MSCI South Korea ETF |
05/09/00 |
850,060 |
1,387,419 |
924,923 |
iShares MSCI Taiwan ETF |
06/20/00 |
1,833,812 |
1,816,514 |
1,180,453 |
Fund |
iShares Core MSCI Emerging Markets ETF |
iShares Emerging Markets Equity Factor ETF |
iShares ESG Aware MSCI EM ETF |
iShares Frontier and Select EM ETF |
Gross income from securities lending activities |
$107,119,340 |
$86,940 |
$1,126,362 |
$186 |
Fees and/or compensation for securities lending activities and related services |
|
|
|
|
Securities lending income paid to BTC for services as securities lending agent |
18,192,858 |
10,123 |
179,153 |
24 |
Cash collateral management expenses not included in securities lending income paid to BTC |
1,245,962 |
1,988 |
17,867 |
12 |
Administrative fees not included in securities lending income paid to BTC |
0 |
0 |
0 |
0 |
Indemnification fees not included in securities lending income paid to BTC |
0 |
0 |
0 |
0 |
Rebates (paid to borrowers) |
4,801,944 |
28,717 |
113,202 |
37 |
Other fees not included in securities lending income paid to BTC |
0 |
0 |
0 |
0 |
Aggregate fees/compensation for securities lending activities |
$24,240,764 |
$40,828 |
$310,222 |
$73 |
Fund |
iShares Core MSCI Emerging Markets ETF |
iShares Emerging Markets Equity Factor ETF |
iShares ESG Aware MSCI EM ETF |
iShares Frontier and Select EM ETF |
Net income from securities lending activities |
$82,878,576 |
$46,112 |
$816,140 |
$113 |
Fund |
iShares MSCI Agriculture Producers ETF |
iShares MSCI Brazil ETF |
iShares MSCI BIC ETF |
iShares MSCI Chile ETF |
Gross income from securities lending activities |
$86,861 |
N/A |
$30,486 |
N/A |
Fees and/or compensation for securities lending activities and related services |
|
|
|
|
Securities lending income paid to BTC for services as securities lending agent |
15,573 |
N/A |
3,939 |
N/A |
Cash collateral management expenses not included in securities lending income paid to BTC |
339 |
N/A |
826 |
N/A |
Administrative fees not included in securities lending income paid to BTC |
0 |
0 |
0 |
0 |
Indemnification fees not included in securities lending income paid to BTC |
0 |
0 |
0 |
0 |
Rebates (paid to borrowers) |
0 |
N/A |
7,767 |
N/A |
Other fees not included in securities lending income paid to BTC |
0 |
0 |
0 |
0 |
Aggregate fees/compensation for securities lending activities |
$15,912 |
N/A |
$12,532 |
N/A |
Net income from securities lending activities |
$70,949 |
N/A |
$17,954 |
N/A |
Fund |
iShares MSCI Emerging Markets Asia ETF |
iShares MSCI Emerging Markets ETF |
iShares MSCI Emerging Markets Min Vol Factor ETF |
iShares MSCI Emerging Markets Small-Cap ETF |
Gross income from securities lending activities |
$182,668 |
$20,325,575 |
$719,301 |
$1,063,014 |
Fund |
iShares MSCI Emerging Markets Asia ETF |
iShares MSCI Emerging Markets ETF |
iShares MSCI Emerging Markets Min Vol Factor ETF |
iShares MSCI Emerging Markets Small-Cap ETF |
Fees and/or compensation for securities lending activities and related services |
|
|
|
|
Securities lending income paid to BTC for services as securities lending agent |
24,886 |
3,256,181 |
90,911 |
183,526 |
Cash collateral management expenses not included in securities lending income paid to BTC |
3,447 |
323,024 |
13,263 |
7,636 |
Administrative fees not included in securities lending income paid to BTC |
0 |
0 |
0 |
0 |
Indemnification fees not included in securities lending income paid to BTC |
0 |
0 |
0 |
0 |
Rebates (paid to borrowers) |
40,967 |
1,912,656 |
200,710 |
35,787 |
Other fees not included in securities lending income paid to BTC |
0 |
0 |
0 |
0 |
Aggregate fees/compensation for securities lending activities |
$69,300 |
$5,491,861 |
$304,884 |
$226,949 |
Net income from securities lending activities |
$113,368 |
$14,833,714 |
$414,417 |
$836,065 |
Fund |
iShares MSCI Global Energy Producers ETF |
iShares MSCI Global Gold Miners ETF |
iShares MSCI Global Metals & Mining Producers ETF |
iShares MSCI Global Min Vol Factor ETF |
Gross income from securities lending activities |
$10,342 |
$95,242 |
$430,462 |
$172,056 |
Fund |
iShares MSCI Global Energy Producers ETF |
iShares MSCI Global Gold Miners ETF |
iShares MSCI Global Metals & Mining Producers ETF |
iShares MSCI Global Min Vol Factor ETF |
Fees and/or compensation for securities lending activities and related services |
|
|
|
|
Securities lending income paid to BTC for services as securities lending agent |
1,310 |
15,074 |
67,829 |
9,202 |
Cash collateral management expenses not included in securities lending income paid to BTC |
223 |
1,232 |
5,532 |
8,071 |
Administrative fees not included in securities lending income paid to BTC |
0 |
0 |
0 |
0 |
Indemnification fees not included in securities lending income paid to BTC |
0 |
0 |
0 |
0 |
Rebates (paid to borrowers) |
2,843 |
10,260 |
48,101 |
109,307 |
Other fees not included in securities lending income paid to BTC |
0 |
0 |
0 |
0 |
Aggregate fees/compensation for securities lending activities |
$4,376 |
$26,566 |
$121,462 |
$126,580 |
Net income from securities lending activities |
$5,966 |
$68,676 |
$309,000 |
$45,476 |
Fund |
iShares MSCI Global Silver and Metals Miners ETF |
iShares MSCI Malaysia ETF |
iShares MSCI South Korea ETF |
iShares MSCI Taiwan ETF |
Gross income from securities lending activities |
$337,413 |
$261,262 |
$4,869,293 |
$16,484,285 |
Fees and/or compensation for securities lending activities and related services |
|
|
|
|
Securities lending income paid to BTC for services as securities lending agent |
50,452 |
46,691 |
811,923 |
2,761,039 |
Fund |
iShares MSCI Global Silver and Metals Miners ETF |
iShares MSCI Malaysia ETF |
iShares MSCI South Korea ETF |
iShares MSCI Taiwan ETF |
Cash collateral management expenses not included in securities lending income paid to BTC |
7,016 |
1,141 |
59,956 |
258,153 |
Administrative fees not included in securities lending income paid to BTC |
0 |
0 |
0 |
0 |
Indemnification fees not included in securities lending income paid to BTC |
0 |
0 |
0 |
0 |
Rebates (paid to borrowers) |
50,108 |
728 |
298,655 |
887,026 |
Other fees not included in securities lending income paid to BTC |
0 |
0 |
0 |
0 |
Aggregate fees/compensation for securities lending activities |
$107,576 |
$48,560 |
$1,170,534 |
$3,906,218 |
Net income from securities lending activities |
$229,837 |
$212,702 |
$3,698,759 |
$12,578,067 |
Fund |
Fund Inception Date |
Brokerage Commissions Paid During Fiscal Year Ended August 31, 2022 |
Brokerage Commissions Paid During Fiscal Year Ended August 31, 2021 |
Brokerage Commissions Paid During Fiscal Year Ended August 31, 2020 |
iShares Core MSCI Emerging Markets ETF |
10/18/12 |
$7,009,955 |
$13,270,049 |
$9,153,513 |
iShares Emerging Markets Equity Factor ETF |
12/08/15 |
537,262 |
342,385 |
244,622 |
iShares ESG Aware MSCI EM ETF |
06/28/16 |
2,820,860 |
3,570,556 |
2,301,784 |
iShares Frontier and Select EM ETF |
09/12/12 |
822,346 |
599,515 |
1,026,713 |
iShares MSCI Agriculture Producers ETF |
01/31/12 |
40,519 |
7,511 |
1,732 |
iShares MSCI Brazil ETF |
07/10/00 |
1,680,898 |
1,273,220 |
1,424,676 |
iShares MSCI BIC ETF |
11/12/07 |
19,517 |
96,185 |
72,535 |
iShares MSCI Chile ETF |
11/12/07 |
795,433 |
502,993 |
589,972 |
iShares MSCI Emerging Markets Asia ETF |
02/08/12 |
148,612 |
312,430 |
92,241 |
iShares MSCI Emerging Markets ETF |
04/07/03 |
3,563,558 |
3,697,749 |
6,013,906 |
iShares MSCI Emerging Markets Min Vol Factor ETF |
10/18/11 |
3,435,108 |
1,794,901 |
1,961,807 |
iShares MSCI Emerging Markets Small-Cap ETF |
08/16/11 |
147,833 |
154,352 |
94,514 |
iShares MSCI Global Energy Producers ETF |
01/31/12 |
7,945 |
4,558 |
6,077 |
iShares MSCI Global Gold Miners ETF |
01/31/12 |
96,564 |
56,519 |
56,205 |
Fund |
Fund Inception Date |
Brokerage Commissions Paid During Fiscal Year Ended August 31, 2022 |
Brokerage Commissions Paid During Fiscal Year Ended August 31, 2021 |
Brokerage Commissions Paid During Fiscal Year Ended August 31, 2020 |
iShares MSCI Global Metals & Mining Producers ETF |
01/31/12 |
212,824 |
172,163 |
26,351 |
iShares MSCI Global Min Vol Factor ETF |
10/18/11 |
541,480 |
695,865 |
663,974 |
iShares MSCI Global Silver and Metals Miners ETF |
01/31/12 |
80,137 |
72,235 |
86,128 |
iShares MSCI Malaysia ETF |
03/12/96 |
123,398 |
128,722 |
213,800 |
iShares MSCI South Korea ETF |
05/09/00 |
1,219,184 |
1,221,318 |
594,253 |
iShares MSCI Taiwan ETF |
06/20/00 |
1,309,354 |
949,640 |
685,758 |
Fund |
Issuer |
Market Value of Investment |
iShares Core MSCI Emerging Markets ETF |
Banco Bradesco SA |
$209,707,395 |
|
CITIC Securities Co. Ltd. |
56,266,295 |
|
|
|
iShares ESG Aware MSCI EM ETF |
Banco Bradesco SA |
$20,617,681 |
|
|
|
iShares MSCI Brazil ETF |
Banco Bradesco SA |
$277,331,329 |
|
Banco BTG Pactual SA |
76,976,055 |
|
Banco Santander SA |
39,304,319 |
|
|
|
iShares MSCI BIC ETF |
Banco Bradesco SA |
$651,903 |
|
CITIC Securities Co. Ltd. |
158,199 |
|
Haitong Securities Co. Ltd. |
46,701 |
|
|
|
iShares MSCI Chile ETF |
Banco Santander SA |
$21,982,068 |
|
|
|
iShares MSCI Emerging Markets Asia ETF |
CITIC Securities Co. Ltd. |
$679,424 |
|
|
|
iShares MSCI Emerging Markets ETF |
Banco Bradesco SA |
$96,273,498 |
|
CITIC Securities Co. Ltd. |
26,013,304 |
|
|
|
iShares MSCI Global Min Vol Factor ETF |
CITIC Securities Co. Ltd. |
$2,619,924 |
|
|
|
Fund |
Fiscal Year Ended August 31, 2022 |
Fiscal Year Ended August 31, 2021 |
iShares Core MSCI Emerging Markets ETF |
7% |
9% |
iShares Emerging Markets Equity Factor ETF |
54% |
49% |
iShares ESG Aware MSCI EM ETF |
41% |
41% |
iShares Frontier and Select EM ETF |
34% |
36% |
iShares MSCI Agriculture Producers ETF |
10% |
6% |
iShares MSCI Brazil ETF |
27% |
17% |
iShares MSCI BIC ETF |
12% |
80% |
iShares MSCI Chile ETF |
94% |
62% |
iShares MSCI Emerging Markets Asia ETF |
24% |
48% |
iShares MSCI Emerging Markets ETF |
21% |
9% |
iShares MSCI Emerging Markets Min Vol Factor ETF |
26% |
38% |
iShares MSCI Emerging Markets Small-Cap ETF |
53% |
34% |
iShares MSCI Global Energy Producers ETF |
12% |
8% |
iShares MSCI Global Gold Miners ETF |
25% |
12% |
iShares MSCI Global Metals & Mining Producers ETF |
19% |
17% |
iShares MSCI Global Min Vol Factor ETF |
23% |
25% |
iShares MSCI Global Silver and Metals Miners ETF |
38% |
31% |
iShares MSCI Malaysia ETF |
48% |
28% |
iShares MSCI South Korea ETF |
24% |
20% |
iShares MSCI Taiwan ETF |
12% |
12% |
Fund |
Shares Per Creation Unit |
Approximate Value Per Creation Unit (U.S.$) |
iShares Core MSCI Emerging Markets ETF |
600,000 |
$25,947,785.40 |
iShares Emerging Markets Equity Factor ETF |
100,000 |
3,861,687.60 |
iShares ESG Aware MSCI EM ETF |
100,000 |
2,784,757.30 |
iShares Frontier and Select EM ETF |
50,000 |
1,227,149.70 |
iShares MSCI Agriculture Producers ETF |
50,000 |
1,950,602.65 |
iShares MSCI Brazil ETF |
50,000 |
1,479,033.20 |
iShares MSCI BIC ETF |
50,000 |
1,605,724.00 |
iShares MSCI Chile ETF |
50,000 |
1,208,991.15 |
iShares MSCI Emerging Markets Asia ETF |
100,000 |
5,783,676.40 |
iShares MSCI Emerging Markets ETF |
450,000 |
15,783,420.15 |
iShares MSCI Emerging Markets Min Vol Factor ETF |
100,000 |
5,073,549.40 |
iShares MSCI Emerging Markets Small-Cap ETF |
100,000 |
4,520,007.20 |
iShares MSCI Global Energy Producers ETF |
50,000 |
1,064,126.10 |
iShares MSCI Global Gold Miners ETF |
50,000 |
934,567.40 |
iShares MSCI Global Metals & Mining Producers ETF |
50,000 |
1,697,624.05 |
iShares MSCI Global Min Vol Factor ETF |
100,000 |
8,869,737.00 |
iShares MSCI Global Silver and Metals Miners ETF |
100,000 |
893,363.10 |
iShares MSCI Malaysia ETF |
75,000 |
1,520,252.63 |
iShares MSCI South Korea ETF |
50,000 |
2,382,237.75 |
iShares MSCI Taiwan ETF |
100,000 |
4,339,182.30 |
Fund |
Standard Creation Transaction Fee |
Maximum Additional Charge* |
iShares Core MSCI Emerging Markets ETF |
$15,000 |
7.0 % |
iShares Emerging Markets Equity Factor ETF |
9,000 |
7.0 % |
iShares ESG Aware MSCI EM ETF |
12,400 |
3.0 % |
iShares Frontier and Select EM ETF |
6,800 |
7.0 % |
iShares MSCI Agriculture Producers ETF |
5,100 |
7.0 % |
iShares MSCI Brazil ETF |
2,400 |
7.0 % |
iShares MSCI BIC ETF |
5,900 |
7.0 % |
iShares MSCI Chile ETF |
3,000 |
3.0 % |
iShares MSCI Emerging Markets Asia ETF |
15,000 |
7.0 % |
iShares MSCI Emerging Markets ETF |
7,700 |
7.0 % |
iShares MSCI Emerging Markets Min Vol Factor ETF |
6,100 |
7.0 % |
iShares MSCI Emerging Markets Small-Cap ETF |
15,000 |
7.0 % |
iShares MSCI Global Energy Producers ETF |
6,100 |
7.0 % |
iShares MSCI Global Gold Miners ETF |
800 |
7.0 % |
iShares MSCI Global Metals & Mining Producers ETF |
8,400 |
7.0 % |
iShares MSCI Global Min Vol Factor ETF |
4,200 |
7.0 % |
iShares MSCI Global Silver and Metals Miners ETF |
500 |
7.0 % |
iShares MSCI Malaysia ETF |
5,000 |
3.0 % |
iShares MSCI South Korea ETF |
4,000 |
3.0 % |
iShares MSCI Taiwan ETF |
4,500 |
3.0 % |
Fund |
Standard Redemption Transaction Fee |
Maximum Additional Charge* |
iShares Core MSCI Emerging Markets ETF |
$15,000 |
2.0 % |
iShares Emerging Markets Equity Factor ETF |
9,000 |
2.0 % |
iShares ESG Aware MSCI EM ETF |
12,400 |
2.0 % |
iShares Frontier and Select EM ETF |
6,800 |
2.0 % |
iShares MSCI Agriculture Producers ETF |
5,100 |
2.0 % |
iShares MSCI Brazil ETF |
2,400 |
2.0 % |
iShares MSCI BIC ETF |
5,900 |
2.0 % |
iShares MSCI Chile ETF |
3,000 |
2.0 % |
iShares MSCI Emerging Markets Asia ETF |
15,000 |
2.0 % |
iShares MSCI Emerging Markets ETF |
7,700 |
2.0 % |
iShares MSCI Emerging Markets Min Vol Factor ETF |
6,100 |
2.0 % |
iShares MSCI Emerging Markets Small-Cap ETF |
15,000 |
2.0 % |
iShares MSCI Global Energy Producers ETF |
6,100 |
2.0 % |
iShares MSCI Global Gold Miners ETF |
800 |
2.0 % |
iShares MSCI Global Metals & Mining Producers ETF |
8,400 |
2.0 % |
iShares MSCI Global Min Vol Factor ETF |
4,200 |
2.0 % |
iShares MSCI Global Silver and Metals Miners ETF |
500 |
2.0 % |
iShares MSCI Malaysia ETF |
5,000 |
2.0 % |
iShares MSCI South Korea ETF |
4,000 |
2.0 % |
Fund |
Standard Redemption Transaction Fee |
Maximum Additional Charge* |
iShares MSCI Taiwan ETF |
4,500 |
2.0 % |
Fund |
Non-Expiring Capital Loss Carryforward |
iShares Core MSCI Emerging Markets ETF |
$7,947,439,378 |
iShares Emerging Markets Equity Factor ETF |
72,557,982 |
iShares ESG Aware MSCI EM ETF |
534,906,743 |
iShares Frontier and Select EM ETF |
140,535,997 |
Fund |
Non-Expiring Capital Loss Carryforward |
iShares MSCI Agriculture Producers ETF |
5,921,350 |
iShares MSCI Brazil ETF |
4,000,561,732 |
iShares MSCI BIC ETF |
225,356,121 |
iShares MSCI Chile ETF |
232,039,320 |
iShares MSCI Emerging Markets Asia ETF |
86,856,550 |
iShares MSCI Emerging Markets ETF |
12,846,992,803 |
iShares MSCI Emerging Markets Min Vol Factor ETF |
841,944,154 |
iShares MSCI Emerging Markets Small- Cap ETF |
9,868,279 |
iShares MSCI Global Energy Producers ETF |
8,293,510 |
iShares MSCI Global Gold Miners ETF |
76,610,760 |
iShares MSCI Global Metals & Mining Producers ETF |
88,990,852 |
iShares MSCI Global Min Vol Factor ETF |
186,666,076 |
iShares MSCI Global Silver and Metals Miners ETF |
38,174,848 |
iShares MSCI Malaysia ETF |
120,857,520 |
iShares MSCI South Korea ETF |
157,839,433 |
BlackRock Investment Stewardship
Global Principles
Effective as of January 2023
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Contents | ||||
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Capital structure, mergers, asset sales, and other special transactions |
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Other corporate governance matters and shareholder protections |
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BlackRock’s oversight of its investment stewardship activities |
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The purpose of this document is to provide an overarching explanation of BlackRock’s approach globally to our responsibilities as a shareholder on behalf of our clients, our expectations of companies, and our commitments to clients in terms of our own governance and transparency.
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Introduction to BlackRock
BlackRock’s purpose is to help more and more people experience financial well-being. We manage assets on behalf of institutional and individual clients, across a full spectrum of investment strategies, asset classes, and regions. Our client base includes pension plans, endowments, foundations, charities, official institutions, insurers, and other financial institutions, as well as individuals around the world. As part of our fiduciary duty to our clients, we consider it one of our responsibilities to promote sound corporate governance, as an informed, engaged shareholder on their behalf. At BlackRock, this is the responsibility of the Investment Stewardship team.
Philosophy on investment stewardship
Companies are responsible for ensuring they have appropriate governance structures to serve the interests of shareholders and other key stakeholders. We believe that there are certain fundamental rights attached to shareholding. Companies and their boards should be accountable to shareholders and structured with appropriate checks and balances to ensure that they operate in shareholders’ best interests to create sustainable value. Shareholders should have the right to vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend the corporate charter or by-laws. Shareholders should be able to vote on key board decisions that are material to the protection of their investment, including but not limited to, changes to the purpose of the business, dilution levels and pre-emptive rights, and the distribution of income and capital structure. In order to make informed decisions, shareholders need sufficient and timely information. In addition, shareholder voting rights should be proportionate to their economic ownership—the principle of “one share, one vote” helps achieve this balance.
Consistent with these shareholder rights, BlackRock has a responsibility to monitor and provide feedback to companies in our role as stewards of our clients’ investments. Investment stewardship is how we use our voice as an investor to promote sound corporate governance and business practices to help maximize long-term shareholder value for our clients, the vast majority of whom are investing for long-term goals such as retirement. BlackRock Investment Stewardship (BIS) does this through engagement with management teams and/or board members on material business issues and, for those clients who have given us authority, through voting proxies in their best long-term financial interests.1 We also contribute to consultations on public policy and private sector initiatives on industry standards, consistent with our clients’ interests as long-term shareholders.
BlackRock looks to companies to provide timely, accurate, and comprehensive disclosure on all material governance and business matters. This transparency allows shareholders to appropriately understand and assess how relevant risks and opportunities are being effectively identified and managed. Where company reporting and disclosure is inadequate or where the governance approach taken may be inconsistent with durable, long-term value creation for shareholders, we will engage with a company and/or vote in a manner that advances long-term shareholders’ interests.
BlackRock views engagement as an important activity; engagement provides us with the opportunity to improve our understanding of the business and of the risks and opportunities that are material to the
1 | Through BlackRock Voting Choice we have, since January 2022, made proxy voting easier and more accessible for investors in separate accounts and certain pooled vehicles. As a result, the shares attributed to BlackRock in company share registers may be voted differently depending on whether our clients have authorized BIS to vote on their behalf, have authorized BIS to vote in accordance with a third party policy, or have elected to vote shares in accordance with their own policy. We are not able to disclose which clients have opted to exercise greater control over their voting, nor are we able to disclose which proxy voting policies they have selected. |
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companies in which our clients invest. Engagement may also inform our voting decisions. As long-term investors on behalf of clients, we seek to have regular and continuing dialogue with executives and board directors to advance sound governance and durable business practices aligned with long-term value creation, as well as to understand the effectiveness of the company’s management and oversight of material issues. Engagement is an important mechanism for providing feedback on company practices and disclosures, particularly where we believe they could be enhanced to support a company’s ability to deliver financial performance. Similarly, it provides us with an opportunity to hear directly from company boards and management on how they believe their actions are aligned with durable, long-term value creation.
We generally vote in support of management and boards that exhibit an approach to decision-making that is consistent with creating durable, long-term value for shareholders. If we have concerns about a company’s approach, we may choose to explain our expectations to the company’s board and management. Following that engagement, we may signal through our voting that we have outstanding concerns, generally by voting against the re-election of directors we view as having responsibility for an issue. We apply our regional proxy voting guidelines to achieve the outcome that is most aligned with our clients’ long-term financial interests.
Key themes
We recognize that accepted standards and norms of corporate governance can differ between markets. However, in our experience, there are certain fundamental elements of governance practice that are intrinsic globally to a company’s ability to create long-term value for shareholders. These global themes are set out in this overarching set of principles (the Principles), which are anchored in transparency and accountability. At a minimum, it is our view that companies should observe the accepted corporate governance standards in their domestic market and ask that, if they do not, they explain how their approach better supports durable, long-term value creation.
These Principles cover seven key themes:
• | Boards and directors |
• | Auditors and audit-related issues |
• | Capital structure, mergers, asset sales, and other special transactions |
• | Compensation and benefits |
• | Material sustainability-related risks and opportunities |
• | Other corporate governance matters and shareholder protections |
• | Shareholder proposals |
Our regional and market-specific voting guidelines explain how these Principles inform our voting decisions in relation to specific ballot items for shareholder meetings.
Boards and directors
Our primary focus is on the performance of the board of directors to promote sound corporate governance. The performance of the board is critical to the economic success of the company and the protection of shareholders’ interests. As part of their responsibilities, board members owe fiduciary duties to shareholders in overseeing the strategic direction and operation of the company. For this reason, BIS sees engaging with and the election of directors as one of our most important and impactful responsibilities.
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We support boards whose approach is consistent with creating durable, long-term value. This includes the effective corporate governance and management of material sustainability-related risks and opportunities,2 as well as the consideration of the company’s key constituents including their employees, clients, suppliers, and the communities within which they operate. The board should establish and maintain a framework of robust and effective governance mechanisms to support its oversight of the company’s strategic aims. We look to the board to articulate the effectiveness of these mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s purpose. Disclosure of all material issues that affect the company’s long-term strategy and ability to create value is essential for shareholders to be able to appropriately understand and assess how risks are effectively identified, managed and mitigated.
Where a company has not adequately disclosed and demonstrated that they have fulfilled these responsibilities, we will consider voting against the re-election of directors whom we consider to have particular responsibility for the issue. We assess director performance on a case-by-case basis and in light of each company’s circumstances, taking into consideration our assessment of their governance, business practices that support durable, long-term value creation, and performance. In serving the interests of shareholders, the responsibility of the board of directors includes, but is not limited to, the following:
• | Establishing an appropriate corporate governance structure |
• | Supporting and overseeing management in setting long-term strategic goals and applicable measures of value-creation and milestones that will demonstrate progress, and taking steps to address anticipated or actual obstacles to success |
• | Providing oversight on the identification and management of material governance and sustainability- related risks |
• | Overseeing the financial resilience of the company, the integrity of financial statements, and the robustness of a company’s Enterprise Risk Management3 framework |
• | Making decisions on matters that require independent evaluation, which may include mergers, acquisitions and dispositions, activist situations or other similar cases |
• | Establishing appropriate executive compensation structures |
• | Monitoring business issues including material sustainability-related risks and opportunities, that have the potential to significantly impact the company’s long-term value |
2 | By material sustainability-related risks and opportunities, we mean the drivers of risk and value creation in a company’s business model that have an environmental or social dependency or impact. Examples of environmental issues include, but are not limited to, water use, land use, waste management and climate risk. Examples of social issues include, but are not limited to, human capital management, impacts on the communities in which a company operates, customer loyalty and relationships with regulators. It is our view that well-managed companies will effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses. Governance is the core means by which boards can oversee the creation of durable, long-term value. Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a sound governance framework. |
3 | Enterprise risk management is a process, effected by the entity’s board of directors, management, and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement of objectives. (Committee of Sponsoring Organizations of the Treadway Commission (COSO), Enterprise Risk Management — Integrated Framework, September 2004, New York, NY). |
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There should be clear descriptions of the role of the board and the committees of the board and how they engage with and oversee management. Set out below are ways in which boards and directors can demonstrate a commitment to acting in the best long-term economic interests of all shareholders.
We will seek to engage with the appropriate directors where we have concerns about the performance of the company, board, or individual directors and may signal outstanding concerns in our voting. While we consider these principles to be globally relevant, when assessing a board’s composition and governance processes, we consider local market norms and regulations.
Regular accountability
It is our view that directors should stand for re-election on a regular basis, ideally annually. In our experience, annual re-elections allow shareholders to reaffirm their support for board members or hold them accountable for their decisions in a timely manner. When board members are not re-elected annually, in our experience, it is good practice for boards to have a rotation policy to ensure that, through a board cycle, all directors have had their appointment re-confirmed, with a proportion of directors being put forward for re-election at each annual general meeting.
Effective board composition
Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect the evolution of the company’s strategy and the market environment. In our view, it is beneficial for new directors to be brought onto the board periodically to refresh the group’s thinking and in a manner that supports both continuity and appropriate succession planning. We consider the average overall tenure of the board, where we are seeking a balance between the knowledge and experience of longer-serving members and the fresh perspectives of newer members. We encourage companies to keep under regular review the effectiveness of their board (including its size), and assess directors nominated for election or re-election in the context of the composition of the board as a whole. This assessment should consider a number of factors, including the potential need to address gaps in skills, experience, independence, and diversity.
In our view, there should be a sufficient number of independent directors, free from conflicts of interest or undue influence from connected parties, to ensure objectivity in the decision-making of the board and its ability to oversee management. Common impediments to independence may include but are not limited to:
• | Current or recent employment at the company or a subsidiary |
• | Being, or representing, a shareholder with a substantial shareholding in the company |
• | Interlocking directorships |
• | Having any other interest, business, or other relationship which could, or could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests of the company and their shareholders |
In our experience, boards are most effective at overseeing and advising management when there is a senior independent board leader. This director may chair the board, or, where the chair is also the CEO (or is otherwise not independent), be designated as a lead independent director. The role of this director is to enhance the effectiveness of the independent members of the board through shaping the agenda, ensuring adequate information is provided to the board, and encouraging independent director participation in board deliberations. The lead independent director or another appropriate director should be available to shareholders in those situations where an independent director is best placed to explain and contextualize a company’s approach.
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When nominating new directors to the board, we look to companies to provide sufficient information on the individual candidates so that shareholders can assess the suitability of each individual nominee and the overall board composition. These disclosures should give an understanding of how the collective experience and expertise of the board aligns with the company’s long-term strategy and business model. Highly qualified, engaged directors with professional characteristics relevant to a company’s business enhance the ability of the board to add value and be the voice of shareholders in board discussions. In our view, a strong board provides a competitive advantage to a company, providing valuable oversight and contributing to the most important management decisions that support long-term financial performance.
It is in this context that we are interested in diversity in the board room. We see it as a means to promoting diversity of thought and avoiding “group think” in the board’s exercise of its responsibilities to advise and oversee management. It allows boards to have deeper discussions and make more resilient decisions. We ask boards to disclose how diversity is considered in board composition, including professional characteristics, such as a director’s industry experience, specialist areas of expertise and geographic location; as well as demographic characteristics such as gender, race/ ethnicity and age.
We look to understand a board’s diversity in the context of a company’s domicile, market capitalization, business model and strategy. Increasingly, we see leading boards adding members whose experience deepens the board’s understanding of the company’s customers, employees and communities. Self-identified board demographic diversity can usefully be disclosed in aggregate, consistent with local law. We believe boards should aspire to meaningful diversity of membership, at least consistent with local regulatory requirements and best practices, while recognizing that building a strong, diverse board can take time.
This position is based on our view that diversity of perspective and thought – in the board room, in the management team and throughout the company – leads to better long term economic outcomes for companies. Academic research already reveals correlations between specific dimensions of diversity and effects on decision-making processes and outcomes.4 In our experience, greater diversity in the board room contributes to more robust discussions and more innovative and resilient decisions. Over time, greater diversity in the board room can also promote greater diversity and resilience in the leadership team, and the workforce more broadly. That diversity can enable companies to develop businesses that more closely reflect and resonate with the customers and communities they serve.
There are matters for which the board has responsibility that may involve a conflict of interest for executives or for affiliated directors. It is our view that objective oversight of such matters is best achieved when the board forms committees comprised entirely of independent directors. In many markets, these committees of the board specialize in audit, director nominations, and compensation matters. An ad hoc committee might also be formed to decide on a special transaction, particularly one involving a related party, or to investigate a significant adverse event.
Sufficient capacity
As the role and expectations of a director are increasingly demanding, directors must be able to commit an appropriate amount of time to board and committee matters. It is important that directors
4 | For a discussion on the different impacts of diversity see: McKinsey, “Diversity Wins: How Inclusion Matters”, May 2022; Harvard Business Review, Diverse Teams Feel Less Comfortable – and That’s Why They Perform Better, September 2016; “Do Diverse Directors Influence DEI Outcomes”, September 2022 McKinsey, “Diversity Wins: How Inclusion Matters”, May 2022; Harvard Business Review, Diverse Teams Feel Less Comfortable – and That’s Why They Perform Better, September 2016; “Do Diverse Directors Influence DEI Outcomes“, September 2022 |
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have the capacity to meet all of their responsibilities - including when there are unforeseen events – and therefore, they should not take on an excessive number of roles that would impair their ability to fulfill their duties.
Auditors and audit-related issues
BlackRock recognizes the critical importance of financial statements, which should provide a true and fair picture of a company’s financial condition. Accordingly, the assumptions made by management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.
The accuracy of financial statements, inclusive of financial and non-financial information as required or permitted under market-specific accounting rules, is of paramount importance to BlackRock. Investors increasingly recognize that a broader range of risks and opportunities have the potential to materially impact financial performance. Over time, we anticipate investors and other users of company reporting will increasingly seek to understand and scrutinize the assumptions underlying financial statements, particularly those that pertain to the impact of the transition to a low carbon economy on a company’s business model and asset mix. We recognize that this is an area of evolving practice and we look to international standards setters, the International Accounting Standards Board (IASB) and the International Auditing and Assurance Standards Board (IAASB) to provide additional guidance to companies.
In this context, audit committees, or equivalent, play a vital role in a company’s financial reporting system by providing independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial information, internal control frameworks, and in the absence of a dedicated risk committee, Enterprise Risk Management systems. In our view, effective audit committee oversight strengthens the quality and reliability of a company’s financial statements and provides an important level of reassurance to shareholders.
We hold members of the audit committee or equivalent responsible for overseeing the management of the audit function. Audit committees or equivalent should have clearly articulated charters that set out their responsibilities and have a rotation plan in place that allows for a periodic refreshment of the committee membership to introduce fresh perspectives to audit oversight. We recognize that audit committees will rely on management, internal audit and the independent auditor in fulfilling their responsibilities but look to committee members to demonstrate they have relevant expertise to monitor and oversee those functions.
We take particular note of unexplained changes in reporting methodology, cases involving significant financial restatements, or ad hoc notifications of material financial weakness. In this respect, audit committees should provide timely disclosure on the remediation of Key and Critical Audit Matters identified either by the external auditor or internal audit function.
The integrity of financial statements depends on the auditor being free of any impediments to being an effective check on management. To that end, it is important that auditors are, and are seen to be, independent. Where an audit firm provides services to the company in addition to the audit, the fees earned should be disclosed and explained. Audit committees should have in place a procedure for assessing annually the independence of the auditor and the quality of the external audit process.
Comprehensive disclosure provides investors with a sense of the company’s long-term operational risk management practices and, more broadly, the quality of the board’s oversight. The audit committee or equivalent, or a dedicated risk committee, should periodically review the company’s risk assessment and risk management policies and the significant risks and exposures identified by management, the
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internal auditors or the independent accountants, and management’s steps to address them. In the absence of robust disclosures, we may reasonably conclude that companies are not adequately managing risk.
Capital structure, mergers, asset sales, and other special transactions
The capital structure of a company is critical to shareholders as it impacts the value of their investment and the priority of their interest in the company relative to that of other equity or debt investors. Pre-emptive rights are a key protection for shareholders against the dilution of their interests.
Effective voting rights are basic rights of share ownership. It is our view that one vote for one share as a guiding principle supports effective corporate governance. Shareholders, as the residual claimants, have the strongest interest in protecting company value, and voting rights should match economic exposure.
In principle, we disagree with the creation of a share class with equivalent economic exposure and preferential, differentiated voting rights. In our view, this structure violates the fundamental corporate governance principle of proportionality and results in a concentration of power in the hands of a few shareholders, thus disenfranchising other shareholders and amplifying any potential conflicts of interest. However, we recognize that in certain markets, at least for a period of time, companies may have a valid argument for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these share class structures on a regular basis or as company circumstances change.
Additionally, they should seek shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while minimizing costs to shareholders.
In assessing mergers, asset sales, or other special transactions, BlackRock’s primary consideration is the long-term economic interests of our clients as shareholders. Boards proposing a transaction need to clearly explain the economic and strategic rationale behind it. We will review a proposed transaction to determine the degree to which it can enhance long-term shareholder value. We would prefer that proposed transactions have the unanimous support of the board and have been negotiated at arm’s length. We may seek reassurance from the board that executives’ and/or board members’ financial interests in a given transaction have not adversely affected their ability to place shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to support should come from the independent directors, a best practice in most markets, and ideally, the terms should have been assessed through an independent appraisal process. In addition, it is good practice that it be approved by a separate vote of the non-conflicted parties.
As a matter of sound governance practice, shareholders should have a right to dispose of company shares in the open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’ ability to sell their shares are contrary to basic property rights. Such mechanisms can serve to protect and entrench interests other than those of the shareholders. In our experience, shareholders are broadly capable of making decisions in their own best interests. We encourage any so-called “shareholder rights plans” proposed by a board to be subject to shareholder approval upon introduction and periodically thereafter.
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Compensation and benefits
In most markets, one of the most important roles for a company’s board of directors is to put in place a compensation structure that incentivizes and rewards executives appropriately. There should be a clear link between variable pay and operational and financial performance. Performance metrics should be stretching and aligned with a company’s strategy and business model. BIS does not have a position on the use of sustainability-related criteria, but in our view, where companies choose to include them, they should be as rigorous as other financial or operational targets. Long-term incentive plans should vest over timeframes aligned with the delivery of long-term shareholder value. Compensation committees should guard against contractual arrangements that would entitle executives to material compensation for early termination of their employment. Finally, pension contributions and other deferred compensation arrangements should be reasonable in light of market practice.
We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where discretion has been used by the compensation committee or its equivalent, we expect disclosure relating to how and why the discretion was used, and how the adjusted outcome is aligned with the interests of shareholders. We acknowledge that the use of peer group evaluation by compensation committees can help ensure competitive pay; however, we are concerned when the rationale for increases in total compensation at a company is solely based on peer benchmarking rather than a rigorous measure of outperformance. We encourage companies to clearly explain how compensation outcomes have rewarded outperformance against peer firms.
We believe consideration should be given to building claw back provisions into incentive plans such that executives would be required to forgo rewards when they are not justified by actual performance and/or when compensation was based on faulty financial reporting or deceptive business practices. We also favor recoupment from any senior executive whose behavior caused material financial harm to shareholders, material reputational risk to the company, or resulted in a criminal investigation, even if such actions did not ultimately result in a material restatement of past results.
Non-executive directors should be compensated in a manner that is commensurate with the time and effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should not risk compromising directors’ independence or aligning their interests too closely with those of the management, whom they are charged with overseeing.
We use third party research, in addition to our own analysis, to evaluate existing and proposed compensation structures. We may vote against members of the compensation committee or equivalent board members for poor compensation practices or structures.
Material sustainability-related risks and opportunities
It is our view that well-managed companies will effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses. Appropriate oversight of sustainability considerations is a core component of having an effective governance framework, which supports durable, long-term value creation.
Robust disclosure is essential for investors to effectively evaluate companies’ strategy and business practices related to material sustainability-related risks and opportunities. Given the increased understanding of material sustainability-related risks and opportunities and the need for better information to assess them, BlackRock advocates for continued improvement in companies’ reporting, where necessary, and will express any concerns through our voting where a company’s actions or disclosures are inadequate.
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BlackRock encourages companies to use the framework developed by the Task Force on Climate-related Financial Disclosures (TCFD) to disclose their approach to ensuring they have a sustainable business model and to supplement that disclosure with industry-specific metrics such as those identified by the Sustainability Accounting Standards Board (SASB), now part of the International Sustainability Standards Board (ISSB) under the International Financial Reporting Standards (IFRS) Foundation.5 While the TCFD framework was developed to support climate-related risk disclosure, the four pillars of the TCFD governance, strategy, risk management, and metrics and targets are a useful way for companies to disclose how they identify, assess, manage, and oversee a variety of sustainability-related risks and opportunities. SASB’s industry-specific guidance (as identified in its materiality map) is beneficial in helping companies identify key performance indicators (KPIs) across various dimensions of sustainability that are considered to be financially material and decision-useful within their industry. In particular, we encourage companies to consider reporting on nature-related factors, given the growing materiality of these issues for many businesses.6 We recognize that some companies may report using different standards, which may be required by regulation, or one of a number of voluntary standards. In such cases, we ask that companies highlight the metrics that are industry- or company-specific.
Climate and other sustainability-related disclosures often require companies to collect and aggregate data from various internal and external sources. We recognize that the practical realities of data-collection and reporting may not line up with financial reporting cycles and companies may require additional time after their fiscal year-end to accurately collect, analyze and report this data to investors. To give investors time to assess the data, we encourage companies to produce climate and other sustainability-related disclosures sufficiently in advance of their annual meeting.
Companies may also adopt or refer to guidance on sustainable and responsible business conduct issued by supranational organizations such as the United Nations or the Organization for Economic Cooperation and Development. Further, industry initiatives on managing specific operational risks may provide useful guidance to companies on best practices and disclosures. Companies should disclose any relevant global climate and other sustainability-related standards adopted, the industry initiatives in which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors understand their approach to sustainable and responsible business practices.
Climate risk
It is our view that climate change has become a key factor in many companies’ long-term prospects. As such, as long-term investors we are interested in understanding how companies may be impacted by material climate-related risks and opportunities - just as we seek to understand other business-relevant risks and opportunities - and how these factors are considered within strategy in a manner consistent with the company’s business model and sector. Specifically, we look for companies to disclose strategies they have in place that mitigate and are resilient to any material risks to their long-term business model associated with a range of climate-related scenarios, including a scenario in
5 | The International Financial Reporting Standards (IFRS) Foundation announced in November 2021 the formation of an International Sustainability Standards Board (ISSB) to develop a comprehensive global baseline of high-quality sustainability disclosure standards to meet investors’ information needs. SASB standards will over time be adapted to ISSB standards but are the reference reporting tool in the meantime. |
6 | While guidance is still under development for a unified disclosure framework related to natural capital, the emerging recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD), may prove useful to some companies. |
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which global warming is limited to well below 2°C, considering global ambitions to achieve a limit of 1.5°C.7 It is, of course, up to each company to define their own strategy: that is not the role of BlackRock or other investors.
BIS recognizes that climate change can be challenging for many companies, as they seek to drive long-term value by mitigating risks and capturing opportunities. A growing number of companies, financial institutions, as well as governments, have committed to advancing decarbonization in line with the Paris Agreement. There is growing consensus that companies can benefit from the more favorable macro-economic environment under an orderly, timely and equitable global energy transition.8 Yet the path ahead is deeply uncertain and uneven, with different parts of the economy moving at different speeds.9 Many companies are asking what their role should be in contributing to an orderly and equitable transition – in ensuring a reliable energy supply and energy security, and in protecting the most vulnerable from energy price shocks and economic dislocation. In this context, we encourage companies to include in their disclosure a business plan for how they intend to deliver long-term financial performance through a transition to global net zero carbon emissions, consistent with their business model and sector.
We look to companies to disclose short-, medium- and long-term targets, ideally science-based targets where these are available for their sector, for Scope 1 and 2 greenhouse gas emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term economic interests of their shareholders. Many companies have an opportunity to use and contribute to the development of low carbon energy sources and technologies that will be essential to decarbonizing the global economy over time. We also recognize that continued investment in traditional energy sources, including oil and gas, is required to maintain an orderly and equitable transition — and that divestiture of carbon-intensive assets is unlikely to contribute to global emissions reductions. We encourage companies to disclose how their capital allocation to various energy sources is consistent with their strategy.
At this stage, we view Scope 3 emissions differently from Scopes 1 and 2, given methodological complexity, regulatory uncertainty, concerns about double-counting, and lack of direct control by companies. While we welcome any disclosures and commitments companies choose to make regarding Scope 3 emissions, we recognize these are provided on a good-faith basis as methodology develops. Our publicly available commentary provides more information on our approach to climate risk.
Key stakeholder interests
In order to advance long-term shareholders’ interests, companies should consider the interests of the various parties on whom they depend for their success over time. It is for each company to determine their key stakeholders based on what is material to their business and long-term financial performance. Most commonly, key stakeholders include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and the communities in which they operate.
7 | The global aspiration to achieve a net-zero global economy by 2050 is reflective of aggregated efforts; governments representing over 90% of GDP have committed to move to net-zero over the coming decades. In determining how to vote on behalf of clients who have authorized us to do so, we look to companies only to address issues within their control and do not anticipate that they will address matters that are the domain of public policy. |
8 | For example, BlackRock’s Capital Markets Assumptions anticipate 25 points of cumulative economic gains over a 20-year period in an orderly transition as compared to the alternative. This better macro environment will support better economic growth, financial stability, job growth, productivity, as well as ecosystem stability and health outcomes. |
9 | BlackRock, “Managing the net-zero transition”, February 2022. |
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Considering the interests of key stakeholders recognizes the collective nature of long-term value creation and the extent to which each company’s prospects for growth are tied to its ability to foster strong sustainable relationships with and support from those stakeholders. Companies should articulate how they address adverse impacts that could arise from their business practices and affect critical business relationships with their stakeholders. We encourage companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material impacts. In our view, maintaining trust within these relationships can contribute to a company’s long-term success.
As a long-term shareholder on behalf of our clients, we find it helpful when companies disclose how they have identified their key stakeholders and considered their interests in business decision-making. We are also interested to understand the role of the board, which is well positioned to ensure that the approach taken is informed by and aligns with the company’s strategy and purpose.
Other corporate governance matters and shareholder protections
It is our view that shareholders have a right to material and timely information on the financial performance and viability of the companies in which they invest. In addition, companies should publish information on the governance structures in place and the rights of shareholders to influence these structures. The reporting and disclosure provided by companies help shareholders assess whether their economic interests have been protected and the quality of the board’s oversight of management. We believe shareholders should have the right to vote on key corporate governance matters, including changes to governance mechanisms, to submit proposals to the shareholders’ meeting, and to call special meetings of shareholders.
Corporate Form
In our view, it is the responsibility of the board to determine the corporate form that is most appropriate given the company’s purpose and business model.10 Companies proposing to change their corporate form to a public benefit corporation or similar entity should put it to a shareholder vote if not already required to do so under applicable law. Supporting documentation from companies or shareholder proponents proposing to alter the corporate form should clearly articulate how the interests of shareholders and different stakeholders would be impacted as well as the accountability and voting mechanisms that would be available to shareholders. As a fiduciary on behalf of clients, we generally support management proposals if our analysis indicates that shareholders’ interests are adequately protected. Relevant shareholder proposals are evaluated on a case-by-case basis.
Shareholder proposals
In most markets in which BlackRock invests on behalf of clients, shareholders have the right to submit proposals to be voted on by shareholders at a company’s annual or extraordinary meeting, as long as eligibility and procedural requirements are met. The matters that we see put forward by shareholders address a wide range of topics, including governance reforms, capital management, and improvements in the management or disclosure of sustainability-related risks.
BlackRock is subject to certain requirements under antitrust law in the United States that place restrictions and limitations on how BlackRock can interact with the companies in which we invest on behalf of our clients, including our ability to submit shareholder proposals. As noted above, we can vote, on behalf of clients who authorize us to do so, on proposals put forth by others.
10 | Corporate form refers to the legal structure by which a business is organized. |
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When assessing shareholder proposals, we evaluate each proposal on its merit, with a singular focus on its implications for long-term value creation. We consider the business and economic relevance of the issue raised, as well as its materiality and the urgency with which we believe it should be addressed. We take into consideration the legal effect of the proposal, as shareholder proposals may be advisory or legally binding depending on the jurisdiction. We would not support proposals that we believe would result in over-reaching into the basic business decisions of the company.
Where a proposal is focused on a material governance or sustainability-related risk that we agree needs to be addressed and the intended outcome is consistent with long-term value creation, we will look to the board and management to demonstrate that the company has met the intent of the request made in the shareholder proposal. Where our analysis and/or engagement indicate an opportunity for improvement in the company’s approach to the issue, we may support shareholder proposals that are reasonable and not unduly prescriptive or constraining on management. Alternatively, or in addition, we may vote against the re-election of one or more directors if, in our assessment, the board has not responded sufficiently or with an appropriate sense of urgency. While we may not agree with all aspects of a shareholder proponent’s views or all facets of the proponent’s supporting statement, we may still support proposals that address material governance or sustainability-related risks where we believe it would be helpful for shareholders to have more detailed information on how those risks are identified, monitored, and managed to support a company’s ability to deliver long-term financial returns. We may also support a proposal if management is on track, but we believe that voting in favor might accelerate progress.
BlackRock’s oversight of its investment stewardship activities
Oversight
BlackRock maintains three regional advisory committees (Stewardship Advisory Committees) for a) the Americas; b) Europe, the Middle East and Africa (EMEA); and c) Asia-Pacific, generally consisting of senior BlackRock investment professionals and/or senior employees with practical boardroom experience. The regional Stewardship Advisory Committees review and advise on amendments to BIS proxy voting guidelines covering markets within each respective region (Guidelines). The advisory committees do not determine voting decisions, which are the responsibility of BIS.
In addition to the regional Stewardship Advisory Committees, the Investment Stewardship Global Oversight Committee (Global Committee) is a risk-focused committee, comprised of senior representatives from various BlackRock investment teams, a senior legal representative, the Global Head of Investment Stewardship (Global Head), and other senior executives with relevant experience and team oversight. The Global Oversight Committee does not determine voting decisions, which are the responsibility of BIS.
The Global Head has primary oversight of the activities of BIS, including voting in accordance with the Guidelines, which require the application of professional judgment and consideration of each company’s unique circumstances. The Global Committee reviews and approves amendments to these Principles. The Global Committee also reviews and approves amendments to the regional Guidelines, as proposed by the regional Stewardship Advisory Committees.
In addition, the Global Committee receives and reviews periodic reports regarding the votes cast by BIS, as well as updates on material process issues, procedural changes, and other risk oversight considerations. The Global Committee reviews these reports in an oversight capacity as informed by the BIS corporate governance engagement program and the Guidelines.
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BIS carries out engagement with companies, monitors and executes proxy votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the relevant Guidelines. BIS also conducts research on corporate governance issues and participates in industry discussions to contribute to and keep abreast of important developments in the corporate governance field. BIS may utilize third parties for certain of the foregoing activities and performs oversight of those third parties. BIS may raise complicated or particularly controversial matters for internal discussion with the relevant investment teams and governance specialists for discussion and guidance prior to making a voting decision.
Vote execution
BlackRock votes on proxy issues when our clients authorize us to do so. We offer certain clients who prefer their holdings to be voted consistent with specific values or views Voting Choice.11 When BlackRock votes on behalf of our clients, we carefully consider proxies submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have voting authority. BlackRock votes (or refrains from voting) proxies for each Fund for which we have voting authority based on our evaluation of the best long-term economic interests of our clients as shareholders, in the exercise of our independent business judgment, and without regard to the relationship of the issuer of the proxy (or any shareholder proponent or dissident shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts management policies and procedures”, below).
When exercising voting rights, BlackRock will normally vote on specific proxy issues in accordance with the Guidelines for the relevant market. The Guidelines are reviewed annually and are amended consistent with changes in the local market practice, as developments in corporate governance occur, or as otherwise deemed advisable by the applicable Stewardship Advisory Committees. BIS analysts may, in the exercise of their professional judgment, conclude that the Guidelines do not cover the specific matter upon which a proxy vote is required or that an exception to the Guidelines would be in the best long-term economic interests of BlackRock’s clients.
In the uncommon circumstance of there being a vote with respect to fixed income securities or the securities of privately held issuers, the decision generally will be made by the Fund’s portfolio managers and/or BIS based on their assessment of the particular transactions or other matters at issue.
In certain markets, proxy voting involves logistical issues which can affect BlackRock’s ability to vote such proxies, as well as the desirability of voting such proxies. These issues include, but are not limited to: i) untimely notice of shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to dispose of their holdings for some specified period in proximity to the shareholder meeting); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide local agents with unrestricted powers of attorney to facilitate voting instructions. We are not supportive of impediments to the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.
As a consequence, BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is generally in the best interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs (including but not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are expected to outweigh the benefit the client would derive by voting on the proposal.
11 | To learn more visit https://www.blackrock.com/corporate/about-us/investment-stewardship/blackrock-voting-choice |
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Portfolio managers have full discretion to vote the shares in the Funds they manage based on their analysis of the economic impact of a particular ballot item on their investors. Portfolio managers may, from time to time, reach differing views on how best to maximize economic value with respect to a particular investment. Therefore, portfolio managers may, and sometimes do, vote shares in the Funds under their management differently from BIS or from one another. However, because BlackRock’s clients are mostly long-term investors with long-term economic goals, ballots are frequently cast in a uniform manner.
Conflicts management policies and procedures
BIS maintains policies and procedures that seek to prevent undue influence on BlackRock’s proxy voting activity. Such influence might stem from any relationship between the investee company (or any shareholder proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, the Fund or the Fund’s affiliates, or BlackRock employees. The following are examples of sources of perceived or potential conflicts of interest:
• | BlackRock clients who may be issuers of securities or proponents of shareholder resolutions |
• | BlackRock business partners or third parties who may be issuers of securities or proponents of shareholder resolutions |
• | BlackRock employees who may sit on the boards of public companies held in Funds managed by BlackRock |
• | Significant BlackRock, Inc. investors who may be issuers of securities held in Funds managed by BlackRock |
• | Securities of BlackRock, Inc. or BlackRock investment funds held in Funds managed by BlackRock |
• | BlackRock, Inc. board members who serve as senior executives or directors of public companies held in Funds managed by BlackRock |
BlackRock has taken certain steps to mitigate perceived or potential conflicts including, but not limited to, the following:
• | Adopted the Guidelines which are designed to advance our clients’ interests in the companies in which BlackRock invests on their behalf |
• | Established a reporting structure that separates BIS from employees with sales, vendor management, or business partnership roles. In addition, BlackRock seeks to ensure that all engagements with corporate issuers, dissident shareholders or shareholder proponents are managed consistently and without regard to BlackRock’s relationship with such parties. Clients or business partners are not given special treatment or differentiated access to BIS. BIS prioritizes engagements based on factors including, but not limited to, our need for additional information to make a voting decision or our view on the likelihood that an engagement could lead to positive outcome(s) over time for the economic value of the company. Within the normal course of business, BIS may engage directly with BlackRock clients, business partners and/or third parties, and/or with employees with sales, vendor management, or business partnership roles, in discussions regarding our approach to stewardship, general corporate governance matters, client reporting needs, and/or to otherwise ensure that proxy-related client service levels are met |
• | Determined to engage, in certain instances, an independent third party voting service provider to make proxy voting recommendations as a further safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance requirements, or as may be otherwise required by applicable law. In such circumstances, the voting service provider provides BlackRock with recommendations, in |
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accordance with the Guidelines, as to how to vote such proxies. BlackRock uses an independent voting service provider to make proxy voting recommendations for shares of BlackRock, Inc. and companies affiliated with BlackRock, Inc. BlackRock may also use an independent voting service provider to make proxy voting recommendations for: |
• | public companies that include BlackRock employees on their boards of directors |
• | public companies of which a BlackRock, Inc. board member serves as a senior executive or a member of the board of directors |
• | public companies that are the subject of certain transactions involving BlackRock Funds |
• | public companies that are joint venture partners with BlackRock, and |
• | public companies when legal or regulatory requirements compel BlackRock to use an independent voting service provider |
In selecting a voting service provider, we assess several characteristics, including but not limited to: independence, an ability to analyze proxy issues and make recommendations in the best economic interest of our clients in accordance with the Guidelines, reputation for reliability and integrity, and operational capacity to accurately deliver the assigned recommendations in a timely manner. We may engage more than one voting service provider, in part to mitigate potential or perceived conflicts of interest at a single voting service provider. The Global Committee appoints and reviews the performance of the voting service providers, generally on an annual basis.
Securities lending
When so authorized, BlackRock acts as a securities lending agent on behalf of Funds. Securities lending is a well-regulated practice that contributes to capital market efficiency. It also enables funds to generate additional returns for a fund, while allowing fund providers to keep fund expenses lower.
With regard to the relationship between securities lending and proxy voting, BlackRock’s approach is informed by our fiduciary responsibility to act in our clients’ best interests. In most cases, BlackRock anticipates that the potential long-term value to the Fund of voting shares would be less than the potential revenue the loan may provide the Fund. However, in certain instances, BlackRock may determine, in its independent business judgment as a fiduciary, that the value of voting outweighs the securities lending revenue loss to clients and would therefore recall shares to be voted in those instances.
The decision to recall securities on loan as part of BlackRock’s securities lending program in order to vote is based on an evaluation of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the potential long-term value to clients of voting those securities (based on the information available at the time of recall consideration).12 BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis teams to evaluate the costs and benefits to clients of recalling shares on loan.
12 | Recalling securities on loan can be impacted by the timing of record dates. In the United States, for example, the record date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not practicable to evaluate a proxy statement, determine that a vote has a material impact on a fund and recall any shares on loan in advance of the record date for the annual meeting. As a result, managers must weigh independent business judgement as a fiduciary, the benefit to a fund’s shareholders of recalling loaned shares in advance of an estimated record date without knowing whether there will be a vote on matters which have a material impact on the fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to potentially earn revenue for the fund (thereby forgoing the opportunity to vote). |
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Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote and may modify it as necessary.
Voting guidelines
The issue-specific Guidelines published for each region/country in which we vote are intended to summarize BlackRock’s general philosophy and approach to issues that may commonly arise in the proxy voting context in each market where we invest. The Guidelines are not intended to be exhaustive. BIS applies the Guidelines on a case-by-case basis, in the context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines do not indicate how BIS will vote in every instance. Rather, they reflect our view about corporate governance issues generally, and provide insight into how we typically approach issues that commonly arise on corporate ballots.
Reporting and vote transparency
We are committed to transparency in the stewardship work we do on behalf of clients. We inform clients about our engagement and voting policies and activities through direct communication and through disclosure on our website. Each year we publish an annual report that provides a global overview of our investment stewardship engagement and voting activities and a voting spotlight that summarizes our voting over a proxy year.13 Additionally, we make public our market-specific voting guidelines for the benefit of clients and companies with whom we engage. We also publish commentaries to share our perspective on market developments and emerging key themes.
At a more granular level, we publish quarterly our vote record for each company that held a shareholder meeting during the period, showing how we voted on each proposal and explaining any votes against management proposals or on shareholder proposals. For shareholder meetings where a vote might be high profile or of significant interest to clients, we may publish a vote bulletin after the meeting, disclosing and explaining our vote on key proposals. We also publish a quarterly list of all companies with which we engaged and the key topics addressed in the engagement meeting.
In this way, we help inform our clients about the work we do on their behalf in promoting the governance and business models that support durable, long-term value creation.
13 | The proxy year runs from July 1 to June 30 of the proceeding calendar year. |
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BlackRock Investment Stewardship
Proxy voting guidelines for U.S. securities
January 2023
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Contents |
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Mergers, acquisitions, transactions, and other special situations |
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These guidelines should be read in conjunction with the BlackRock Investment Stewardship Global Principles.
Introduction
As stewards of our clients’ investments, BlackRock believes it has a responsibility to engage with management teams and/or board members on material business issues and, for those clients who have given us authority, to vote proxies in the best long-term economic interests of their assets.
The following issue-specific proxy voting guidelines (the “Guidelines”) summarize BlackRock Investment Stewardship’s (“BIS”) philosophy and approach to engagement and voting, as well as our view of governance best practices and the roles and responsibilities of boards and directors for publicly listed U.S. companies. These Guidelines are not intended to limit the analysis of individual issues at specific companies or provide a guide to how BIS will engage and/or vote in every instance. They are to be applied with discretion, taking into consideration the range of issues and facts specific to the company, as well as individual ballot items at shareholder meetings.
Voting guidelines
These guidelines are divided into eight key themes, which group together the issues that frequently appear on the agenda of shareholder meetings:
• | Boards and directors |
• | Auditors and audit-related issues |
• | Capital structure |
• | Mergers, acquisitions, asset sales, and other special transactions |
• | Executive compensation |
• | Material sustainability-related risks and opportunities |
• | General corporate governance matters |
• | Shareholder protections |
Boards and directors
An effective and well-functioning board is critical to the economic success of the company and the protection of shareholders’ interests, inducting the establishment of appropriate governance structures that facilitate oversight of management and the company’s strategic initiatives. As part of their responsibilities, board members owe fiduciary duties to shareholders in overseeing the strategic direction, operations, and risk management of the company. For this reason, BIS sees engagement with and the election of directors as one of our most critical responsibilities.
Disclosure of material issues that affect the company’s long-term strategy and value creation, including, when relevant, material sustainability-related factors, is essential for shareholders to appropriately understand and assess how effectively the board is identifying, managing, and mitigating risks.
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Where a company has not adequately demonstrated, through actions and/or disclosures, how material issues are appropriately identified, managed, and overseen, we will consider voting against the re-election of those directors responsible for the oversight of such issues, as indicated below.
Independence
It is our view that a majority of the directors on the board should be independent to ensure objectivity in the decision-making of the board and its ability to oversee management. In addition, all members of audit, compensation, and nominating/governance committees should be independent. Our view of independence may vary from listing standards.
Common impediments to independence may include:
• | Employment as a senior executive by the company or a subsidiary within the past five years |
• | An equity ownership in the company in excess of 20% |
• | Having any other interest, business, or relationship (professional or personal) which could, or could reasonably be perceived to, materially interfere with the director’s ability to act in the best interests of the company and its shareholders We may vote against directors who we do not consider to be independent, including at controlled companies, when we believe oversight could be enhanced with greater independent director representation. To signal our concerns, we may also vote against the chair of the nominating/governance committee, or where no chair exists, the nominating/governance committee member with the longest tenure. |
Oversight role of the board
The board should exercise appropriate oversight of management and the business activities of the company. Where we determine that a board has failed to do so in a way that may impede a company’s long-term value, we may vote against the responsible committees and/or individual directors.
Common circumstances are illustrated below:
• | Where the board has failed to facilitate quality, independent auditing or accounting practices, we may vote against members of the audit committee |
• | Where the company has failed to provide shareholders with adequate disclosure to conclude that appropriate strategic consideration is given to material risk factors (including, where relevant, sustainability factors), we may vote against members of the responsible committee, or the most relevant director |
• | Where it appears that a director has acted (at the company or at other companies) in a manner that compromises their ability to represent the best long-term economic interests of shareholders, we may vote against that individual |
• | Where a director has a multi-year pattern of poor attendance at combined board and applicable committee meetings, or a director has poor attendance in a single year with no disclosed rationale, we may vote against that individual. Excluding exigent circumstances, BIS generally considers attendance at less than 75% of the combined board and applicable committee meetings to be poor attendance |
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• | Where a director serves on an excessive number of boards, which may limit their capacity to focus on each board’s needs, we may vote against that individual. The following identifies the maximum number of boards on which a director may serve, before BIS considers them to be over-committed: |
Public Company Executive14 |
# Outside Public Boards15 |
Total # of Public Boards |
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Director A |
✓ | 1 | 2 | |||||||||
Director B |
3 | 4 |
In addition, we recognize that board leadership roles may vary in responsibility and time requirements in different markets around the world. In particular, where a director maintains a Chair role of a publicly listed company in European markets, we may consider that responsibility as equal to two board commitments, consistent with our EMEA Proxy Voting Guidelines. We will take the total number of board commitments across our global policies into account for director elections.
Risk oversight
Companies should have an established process for identifying, monitoring, and managing business and material risks. Independent directors should have access to relevant management information and outside advice, as appropriate, to ensure they can properly oversee risk. We encourage companies to provide transparency around risk management, mitigation, and reporting to the board. We are particularly interested in understanding how risk oversight processes evolve in response to changes in corporate strategy and/or shifts in the business and related risk environment. Comprehensive disclosures provide investors with a sense of the company’s long-term risk management practices and, more broadly, the quality of the board’s oversight. In the absence of robust disclosures, we may reasonably conclude that companies are not adequately managing risk.
Board Structure
Classified board of directors/staggered terms
Directors should be re-elected annually; classification of the board generally limits shareholders’ rights to regularly evaluate a board’s performance and select directors. While we will typically support proposals requesting board de-classification, we may make exceptions, should the board articulate an appropriate strategic rationale for a classified board structure. This may include when a company needs consistency and stability during a time of transition, e.g., newly public companies or companies undergoing a strategic restructuring. A classified board structure may also be justified at non-operating companies, e.g., closed-end funds or business development companies (“BDC”),16 in certain circumstances. However, in these instances, boards should periodically review the rationale for a classified structure and consider when annual elections might be more appropriate.
Without a voting mechanism to immediately address concerns about a specific director, we may choose to vote against the directors up for election at the time (see “Shareholder rights” for additional detail).
14 | A public company executive is defined as a Named Executive Officer (NEO) or Executive Chair. |
15 | In addition to the company under review. |
16 | A BDC is a special investment vehicle under the Investment Company Act of 1940 that is designed to facilitate capital formation for small and middle-market companies. |
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Independent leadership
There are two commonly accepted structures for independent leadership to balance the CEO role in the boardroom: 1) an independent Chair; or 2) a Lead Independent director when the roles of Chair and CEO are combined, or when the Chair is otherwise not independent.
In the absence of a significant governance concern, we defer to boards to designate the most appropriate leadership structure to ensure adequate balance and independence.17 However, BIS may vote against the most senior non-executive member of the board when appropriate independence is lacking in designated leadership roles.
In the event that the board chooses to have a combined Chair/CEO or a non-independent Chair, we support the designation of a Lead Independent director, with the ability to: 1) provide formal input into board meeting agendas; 2) call meetings of the independent directors; and 3) preside at meetings of independent directors. These roles and responsibilities should be disclosed and easily accessible.
The following table illustrates examples18 of responsibilities under each board leadership model:
Combined Chair/CEO or CEO + Non-independent Chair |
Separate Independent Chair | |||||
Chair/CEO or Non-independent Chair |
Lead Independent Director |
Independent Chair | ||||
Board Meetings |
Authority to call full meetings of the board of directors |
Attends full meetings of the board of directors
Authority to call
Briefs CEO on issues |
Authority to call full meetings of the board of directors | |||
Agenda |
Primary responsibility for shaping board agendas, consulting with the lead independent director |
Collaborates with chair/CEO to set board agenda and board information |
Primary responsibility for shaping board agendas, in conjunction with CEO |
17 | To this end, we do not view shareholder proposals asking for the separation of Chair and CEO to be a proxy for other concerns we may have at the company for which a vote against directors would be more appropriate. Rather, support for such a proposal might arise in the case of overarching and sustained governance concerns such as lack of independence or failure to oversee a material risk over consecutive years. |
18 | This table is for illustrative purposes only. The roles and responsibilities cited here are not all-encompassing and are noted for reference as to how these leadership positions may be defined. |
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Combined Chair/CEO or CEO + Non-independent Chair |
Separate Independent Chair | |||||
Chair/CEO or Non-independent Chair |
Lead Independent Director |
Independent Chair | ||||
Board Communications |
Communicates with all directors on key issues and concerns outside of full board meetings |
Facilitates discussion among independent directors on key issues and concerns outside of full board meetings, including contributing to the oversight of CEO and management succession planning |
Facilitates discussion among independent directors on key issues and concerns outside of full board meetings, including contributing to the oversight of CEO and management succession planning |
CEO and management succession planning
Companies should have a robust CEO and senior management succession plan in place at the board level that is reviewed and updated on a regular basis. Succession planning should cover scenarios over both the long-term, consistent with the strategic direction of the company and identified leadership needs over time, as well as the short-term, in the event of an unanticipated executive departure. We encourage the company to explain their executive succession planning process, including where accountability lies within the boardroom for this task, without prematurely divulging sensitive information commonly associated with this exercise.
During a CEO transition, companies may elect for the departing CEO to maintain a role in the boardroom. We ask for disclosures to understand the timeframe and responsibilities of this role. In such instances, we typically look for the board to have appropriate independent leadership structures in place. (See chart above.)
Director compensation and equity programs
Compensation for directors should generally be structured to attract and retain directors, while also aligning their interests with those of shareholders. In our view, director compensation packages that are based on the company’s long-term value creation and include some form of long-term equity compensation are more likely to meet this goal.
Board composition and effectiveness
Director qualifications and skills
We encourage boards to periodically review director qualifications and skills to ensure relevant experience and diverse perspectives are represented in the boardroom. To this end, performance reviews and skills assessments should be conducted by the nominating/governance committee or the Lead Independent Director. This process may include internal board evaluations; however, boards may also find it useful to periodically conduct an assessment with a third party. We encourage boards to disclose their approach to evaluations, including objectives of the evaluation; if an external party conducts the evaluation; the frequency of the evaluations; and, whether that evaluation occurs on an individual director basis.
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Board term limits and director tenure
Where boards find that age limits or term limits are the most efficient and objective mechanism for ensuring periodic board refreshment, we generally defer to the board’s determination in setting such limits. BIS will also consider the average board tenure to evaluate processes for board renewal. We may oppose boards that appear to have an insufficient mix of short-, medium-, and long-tenured directors.
Board diversity
As noted above, highly qualified, engaged directors with professional characteristics relevant to a company’s business enhance the ability of the board to add value and be the voice of shareholders in board discussions. In our view, a strong board provides a competitive advantage to a company, providing valuable oversight and contributing to the most important management decisions that support long-term financial performance.
It is in this context that we are interested in diversity in the boardroom. We see it as a means to promoting diversity of thought and avoiding ‘group think’ in the board’s exercise of its responsibilities to advise and oversee management. It allows boards to have deeper discussions and make more resilient decisions. We ask boards to disclose how diversity is considered in board composition, including professional characteristics, such as a director’s industry experience, specialist areas of expertise and geographic location; as well as demographic characteristics such as gender, race/ ethnicity, and age.
We look to understand a board’s diversity in the context of a company’s domicile, market capitalization, business model, and strategy. Increasingly, we see leading boards adding members whose experience deepens the board’s understanding of the company’s customers, employees, and communities. Self-identified board demographic diversity can usefully be disclosed in aggregate, consistent with local law. We believe boards should aspire to meaningful diversity of membership, at least consistent with local regulatory requirements and best practices, while recognizing that building a strong, diverse board can take time.
This position is based on our view that diversity of perspective and thought—in the boardroom, in the management team and throughout the company—leads to better long-term economic outcomes for companies. Academic and other research reveals correlations between specific dimensions of diversity and effects on decision-making processes and outcomes.19 In our experience, greater diversity in the boardroom contributes to more robust discussions and more innovative and resilient decisions. Over time, greater diversity in the boardroom can also promote greater diversity and resilience in the leadership team, and the workforce more broadly. That diversity can enable companies to develop businesses that more closely reflect and resonate with the customers and communities they serve.
In the U.S., we believe that boards should aspire to at least 30% diversity of membership,20 and we encourage large companies, such as those in the S&P 500, to lead in achieving this standard. In our
19 | For a discussion on the different impacts of diversity see: McKinsey, “Diversity Wins: How Inclusion Matters”, May 2022; Harvard Business Review, Diverse Teams Feel Less Comfortable – and That’s Why They Perform Better, September 2016; “Do Diverse Directors Influence DEI Outcomes”, September 2022 |
20 | We take a case-by-case approach and consider the size of the board in our evaluation of overall composition and diversity. Business model, strategy, location, and company size may also impact our analysis of board diversity. We acknowledge that these factors may also play into the various elements of diversity that a board may attract. We look for disclosures from companies to help us understand their approach and do not prescribe any particular board composition. |
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view, an informative indicator of diversity for such companies is having at least two women and a director who identifies as a member of an underrepresented group.21 We recognize that it may take time and that companies with smaller market capitalizations and in certain sectors may face more challenges in pursuing diversity. Among these smaller companies, we look for the presence of diversity and take into consideration the progress that companies are making.
In order to help investors understand overall diversity, we look to boards to disclose:
• | How diversity, including demographic factors and professional characteristics, is considered in board composition, given the company’s long-term strategy and business model |
• | How directors’ professional characteristics, which may include domain expertise such as finance or technology, and sector- or market-specific experience, are complementary and link to the company’s long-term strategy |
• | The process by which candidates for board positions are identified, including whether professional firms or other resources outside of incumbent directors’ networks are engaged to identify and/or assess candidates, and whether a diverse slate of nominees is considered for all available board nominations |
To the extent that, based on our assessment of corporate disclosures, a company has not adequately explained their approach to diversity in their board composition, we may vote against members of the nominating/governance committee. Our publicly available commentary provides more information on our approach to board diversity.
Board size
We typically defer to the board in setting the appropriate size and believe that directors are generally in the best position to assess the optimal board size to ensure effectiveness. However, we may vote against the appropriate committees and/or individual directors if, in our view, the board is ineffective in its oversight, either because it is too small to allow for the necessary range of skills and experience or too large to function efficiently.
Board responsiveness and shareholder rights
Shareholder rights
Where we determine that a board has not acted in the best interests of the company’s shareholders, or takes action to unreasonably limit shareholder rights, we may vote against the appropriate committees and/or individual directors. Common circumstances are illustrated below:
• | The Independent Chair or Lead Independent Director and members of the nominating/governance committee, where a board implements or renews a poison pill without shareholder approval |
• | The Independent Chair or Lead Independent Director and members of the nominating/governance committee, where a board amends the charter/articles/bylaws and where the effect may be to entrench directors or to unreasonably reduce shareholder rights |
• | Members of the compensation committee where the company has repriced options without shareholder approval If a board maintains a classified structure, it is possible that the director(s) or |
21 | Including, but not limited to, individuals who identify as Black or African American, Hispanic or Latinx, Asian, Native American or Alaska Native, or Native Hawaiian or Pacific Islander; individuals who identify as LGBTQ+; individuals who identify as underrepresented based on national, Indigenous, religious, or cultural identity; individuals with disabilities; and veterans. |
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committee members with whom we have a particular concern may not be subject to election in the year that the concern arises. In such situations, we may register our concern by voting against the most relevant director(s) up for election. |
Responsiveness to shareholders
A board should be engaged and responsive to the company’s shareholders, including acknowledging voting outcomes for director elections, compensation, shareholder proposals, and other ballot items. Where we determine that a board has not substantially addressed shareholder concerns that we deem material to the business, we may vote against the responsible committees and/or individual directors. Common circumstances are illustrated below:
• | The Independent Chair or Lead Independent Director, members of the nominating/governance committee, and/or the longest tenured director(s), where we observe a lack of board responsiveness to shareholders, evidence of board entrenchment, and/or failure to plan for adequate board member succession |
• | The chair of the nominating/governance committee, or where no chair exists, the nominating/ governance committee member with the longest tenure, where board member(s) at the most recent election of directors have received against votes from more than 25% of shares voted, and the board has not taken appropriate action to respond to shareholder concerns. This may not apply in cases where BIS did not support the initial vote against such board member(s) |
• | The Independent Chair or Lead Independent Director and/or members of the nominating/ governance committee, where a board fails to consider shareholder proposals that (1) receive substantial support, and (2) in our view, have a material impact on the business, shareholder rights, or the potential for long-term value creation |
Majority vote requirements
Directors should generally be elected by a majority of the shares voted. We will normally support proposals seeking to introduce bylaws requiring a majority vote standard for director elections. Majority vote standards generally assist in ensuring that directors who are not broadly supported by shareholders are not elected to serve as their representatives. As a best practice, companies with either a majority vote standard or a plurality vote standard should adopt a resignation policy for directors who do not receive support from at least a majority of votes cast. Where the company already has a sufficiently robust majority voting process in place, we may not support a shareholder proposal seeking an alternative mechanism.
We note that majority voting may not be appropriate in all circumstances, for example, in the context of a contested election, or for majority-controlled companies or those with concentrated ownership structures.
Cumulative voting
As stated above, a majority vote standard is generally in the best long-term interests of shareholders, as it ensures director accountability through the requirement to be elected by more than half of the votes cast. As such, we will generally oppose proposals requesting the adoption of cumulative voting, which may disproportionately aggregate votes on certain issues or director candidates.
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Auditors and audit-related issues
BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a company’s financial condition. Consistent with our approach to voting on directors, we seek to hold the audit committee of the board responsible for overseeing the management of the independent auditor and the internal audit function at a company.
We may vote against the audit committee members where the board has failed to facilitate quality, independent auditing. We look to public disclosures for insight into the scope of the audit committee responsibilities, including an overview of audit committee processes, issues on the audit committee agenda, and key decisions taken by the audit committee. We take particular note of cases involving significant financial restatements or material weakness disclosures, and we look for timely disclosure and remediation of accounting irregularities.
The integrity of financial statements depends on the auditor effectively fulfilling its role. To that end, we favor an independent auditor. In addition, to the extent that an auditor fails to reasonably identify and address issues that eventually lead to a significant financial restatement, or the audit firm has violated standards of practice, we may also vote against ratification.
From time to time, shareholder proposals may be presented to promote auditor independence or the rotation of audit firms. We may support these proposals when they are consistent with our views as described above.
Capital structure proposals
Equal voting rights
In our view, shareholders should be entitled to voting rights in proportion to their economic interests. In addition, companies that have implemented dual or multiple class share structures should review these structures on a regular basis, or as company circumstances change. Companies with multiple share classes should receive shareholder approval of their capital structure on a periodic basis via a management proposal on the company’s proxy. The proposal should give unaffiliated shareholders the opportunity to affirm the current structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while minimizing costs to shareholders. Where companies are unwilling to voluntarily implement “one share, one vote” within a specified timeframe, or are unresponsive to shareholder feedback for change over time, we generally support shareholder proposals to recapitalize stock into a single voting class.
Blank check preferred stock
We frequently oppose proposals requesting authorization of a class of preferred stock with unspecified voting, conversion, dividend distribution, and other rights (“blank check” preferred stock) because they may serve as a transfer of authority from shareholders to the board and as a possible entrenchment device. We generally view the board’s discretion to establish voting rights on a when-issued basis as a potential anti-takeover device, as it affords the board the ability to place a block of stock with an investor sympathetic to management, thereby foiling a takeover bid without a shareholder vote.
Nonetheless, we may support the proposal where the company:
• | Appears to have a legitimate financing motive for requesting blank check authority |
• | Has committed publicly that blank check preferred shares will not be used for anti-takeover purposes |
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• | Has a history of using blank check preferred stock for financings |
• | Has blank check preferred stock previously outstanding such that an increase would not necessarily provide further anti-takeover protection but may provide greater financing flexibility |
Increase in authorized common shares
BIS will evaluate requests to increase authorized shares on a case-by-case basis, in conjunction with industry-specific norms and potential dilution, as well as a company’s history with respect to the use of its common shares.
Increase or issuance of preferred stock
We generally support proposals to increase or issue preferred stock in cases where the company specifies the voting, dividend, conversion, and other rights of such stock and where the terms of the preferred stock appear reasonable.
Stock splits
We generally support stock splits that are not likely to negatively affect the ability to trade shares or the economic value of a share. We generally support reverse stock splits that are designed to avoid delisting or to facilitate trading in the stock, where the reverse split will not have a negative impact on share value (e.g., one class is reduced while others remain at pre-split levels). In the event of a proposal for a reverse split that would not proportionately reduce the company’s authorized stock, we apply the same analysis we would use for a proposal to increase authorized stock.
Mergers, acquisitions, transactions, and other special situations
Mergers, acquisitions, and transactions
In assessing mergers, acquisitions, or other transactions– including business combinations involving Special Purpose Acquisition Companies (“SPACs”) – BIS’ primary consideration is the long-term economic interests of our clients as shareholders. Boards should clearly explain the economic and strategic rationale for any proposed transactions or material changes to the business. We will review a proposed transaction to determine the degree to which it has the potential to enhance long-term shareholder value. While mergers, acquisitions, asset sales, business combinations, and other special transaction proposals vary widely in scope and substance, we closely examine certain salient features in our analyses, such as:
• | The degree to which the proposed transaction represents a premium to the company’s trading price. We consider the share price over multiple time periods prior to the date of the merger announcement. We may consider comparable transaction analyses provided by the parties’ financial advisors and our own valuation assessments. For companies facing insolvency or bankruptcy, a premium may not apply |
• | There should be clear strategic, operational, and/or financial rationale for the combination |
• | Unanimous board approval and arm’s-length negotiations are preferred. We will consider whether the transaction involves a dissenting board or does not appear to be the result of an arm’s-length bidding process. We may also consider whether executive and/or board members’ financial interests appear likely to affect their ability to place shareholders’ interests before their own, as well as measures taken to address conflicts of interest |
• | We prefer transaction proposals that include the fairness opinion of a reputable financial advisor assessing the value of the transaction to shareholders in comparison to recent similar transactions |
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Contested director elections and special situations
Contested elections and other special situations22 are assessed on a case-by-case basis. We evaluate a number of factors, which may include: the qualifications and past performance of the dissident and management candidates; the validity of the concerns identified by the dissident; the viability of both the dissident’s and management’s plans; the ownership stake and holding period of the dissident; the likelihood that the dissident’s strategy will produce the desired change; and whether the dissident represents the best option for enhancing long-term shareholder value.
We will evaluate the actions that the company has taken to limit shareholders’ ability to exercise the right to nominate dissident director candidates, including those actions taken absent the immediate threat of a contested situation. BIS may take voting action against directors(up to and including the full board) where those actions are viewed as egregiously infringing on shareholder rights.
We will consider a variety of possible voting outcomes in contested situations, including the ability to support a mix of management and dissident nominees.
Poison pill plans
Where a poison pill is put to a shareholder vote by management, our policy is to examine these plans individually. Although we have historically opposed most plans, we may support plans that include a reasonable “qualifying offer clause.” Such clauses typically require shareholder ratification of the pill and stipulate a sunset provision whereby the pill expires unless it is renewed. These clauses also tend to specify that an all-cash bid for all shares that includes a fairness opinion and evidence of financing does not trigger the pill, but forces either a special meeting at which the offer is put to a shareholder vote or requires the board to seek the written consent of shareholders, where shareholders could rescind the pill at their discretion. We may also support a pill where it is the only effective method for protecting tax or other economic benefits that may be associated with limiting the ownership changes of individual shareholders. Lastly, we look for shareholder approval of poison pill plans within one year of adoption of implementation.
Reimbursement of expense for successful shareholder campaigns
We generally do not support shareholder proposals seeking the reimbursement of proxy contest expenses, even in situations where we support the shareholder campaign. Introducing the possibility of such reimbursement may incentivize disruptive and unnecessary shareholder campaigns.
Executive compensation
A company’s board of directors should put in place a compensation structure that balances incentivizing, rewarding, and retaining executives appropriately across a wide range of business outcomes. This structure should be aligned with shareholder interests, particularly the generation of sustainable, long-term value.
22 | Special situations are broadly defined as events that are non-routine and differ from the normal course of business for a company’s shareholder meeting, involving a solicitation other than by management with respect to the exercise of voting rights in a manner inconsistent with management’s recommendation. These may include instances where shareholders nominate director candidates, oppose the view of management and/or the board on mergers, acquisitions, or other transactions, etc. |
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The compensation committee should carefully consider the specific circumstances of the company and the key individuals the board is focused on incentivizing. We encourage companies to ensure that their compensation plans incorporate appropriate and rigorous performance metrics, consistent with corporate strategy and market practice. Performance-based compensation should include metrics that are relevant to the business and stated strategy and/or risk mitigation efforts. Goals, and the processes used to set these goals, should be clearly articulated and appropriately rigorous. We use third party research, in addition to our own analysis, to evaluate existing and proposed compensation structures. We hold members of the compensation committee, or equivalent board members, accountable for poor compensation practices and/or structures.
There should be a clear link between variable pay and company performance that drives sustained value creation for our clients as shareholders. Where compensation structures provide for a front-loaded23 award, we look for appropriate structures (including vesting and/or holding periods) that motivate sustained performance for shareholders over a number of years. We generally do not favor programs focused on awards that require performance levels to be met and maintained for a relatively short time period for payouts to be earned, unless there are extended vesting and/or holding requirements.
Compensation structures should generally drive outcomes that align the pay of the executives with performance of the company and the value received by shareholders. When evaluating performance, we examine both executive teams’ efforts, as well as outcomes realized by shareholders. Payouts to executives should reflect both the executive’s contributions to the company’s ongoing success, as well as exogenous factors that impacted shareholder value. Where discretion has been used by the compensation committee, we look for disclosures relating to how and why the discretion was used and how the adjusted outcome is aligned with the interests of shareholders. While we believe special awards24 should be used sparingly, we acknowledge that there may be instances when such awards are appropriate. When evaluating these awards, we consider a variety of factors, including the magnitude and structure of the award, the scope of award recipients, the alignment of the grant with shareholder value, and the company’s historical use of such awards, in addition to other company-specific circumstances.
We acknowledge that the use of peer group evaluation by compensation committees can help calibrate competitive pay; however, we are concerned when the rationale for increases in total compensation is solely based on peer benchmarking.
We support incentive plans that foster the sustainable achievement of results– both financial and non-financial – consistent with the company’s strategic initiatives. Compensation committees should guard against contractual arrangements that would entitle executives to material compensation for early termination of their contract. Finally, pension contributions and other deferred compensation arrangements should be reasonable in light of market practices. Our publicly available commentary provides more information on our approach to executive compensation.
Where executive compensation appears excessive relative to the performance of the company and/or compensation paid by peers, or where an equity compensation plan is not aligned with shareholders’ interests, we may vote against members of the compensation committee.
23 | Front-loaded awards are generally those that accelerate the grant of multiple years’ worth of compensation in a single year. |
24 | “Special awards” refers to awards granted outside the company’s typical compensation program. |
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“Say on Pay” advisory resolutions
In cases where there is a “Say on Pay” vote, BIS will respond to the proposal as informed by our evaluation of compensation practices at that particular company and in a manner that appropriately addresses the specific question posed to shareholders. Where we conclude that a company has failed to align pay with performance, we will vote against the management compensation proposal and relevant compensation committee members.
Frequency of “Say on Pay” advisory resolutions
BIS will generally support annual advisory votes on executive compensation. It is our view that shareholders should have the opportunity to express feedback on annual incentive programs and changes to long-term compensation before multiple cycles are issued. Where a company has failed to implement a “Say on Pay” advisory vote within the frequency period that received the most support from shareholders or a “Say on Pay” resolution is omitted without explanation, BIS may vote against members of the compensation committee.
Clawback proposals
We generally favor prompt recoupment from any senior executive whose compensation was based on faulty financial reporting or deceptive business practices. We also favor prompt recoupment from any senior executive whose behavior caused material financial harm to shareholders, material reputational risk to the company, or resulted in a criminal proceeding, even if such actions did not ultimately result in a material restatement of past results. This includes, but is not limited to, settlement agreements arising from such behavior and paid for directly by the company. We typically support shareholder proposals on these matters unless the company already has a robust clawback policy that sufficiently addresses our concerns.
Employee stock purchase plans
Employee stock purchase plans (“ESPP”) are an important part of a company’s overall human capital management strategy and can provide performance incentives to help align employees’ interests with those of shareholders. The most common form of ESPP qualifies for favorable tax treatment under Section 423 of the Internal Revenue Code. We will typically support qualified ESPP proposals.
Equity compensation plans
BIS supports equity plans that align the economic interests of directors, managers, and other employees with those of shareholders. Boards should establish policies prohibiting the use of equity awards in a manner that could disrupt the intended alignment with shareholder interests, such as the excessive pledging or heading of stock. We may support shareholder proposals requesting the establishment of such policies.
Our evaluation of equity compensation plans is based on a company’s executive pay and performance relative to peers and whether the plan plays a significant role in a pay-for-performance disconnect. We generally oppose plans that contain “evergreen” provisions, which allow for automatic annual increases of shares available for grant without requiring further shareholder approval; we note that the aggregate impacts of such increases are difficult to predict and may lead to significant dilution. We also generally oppose plans that allow for repricing without shareholder approval. We may oppose plans that provide for the acceleration of vesting of equity awards even in situations where an actual change of control may not occur. We encourage companies to structure their change of control provisions to require the termination of the covered employee before acceleration or special payments are triggered (commonly referred to as “double trigger” change of control provisions).
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Golden parachutes
We generally view golden parachutes as encouragement to management to consider transactions that might be beneficial to shareholders. However, a large potential payout under a golden parachute arrangement also presents the risk of motivating a management team to support a sub-optimal sale price for a company.
When determining whether to support or oppose an advisory vote on a golden parachute plan, BIS may consider several factors, including:
• | Whether we determine that the triggering event is in the best interests of shareholders |
• | Whether management attempted to maximize shareholder value in the triggering event |
• | The percentage of total premium or transaction value that will be transferred to the management team, rather than shareholders, as a result of the golden parachute payment |
• | Whether excessively large excise tax gross-up payments are part of the pay-out |
• | Whether the pay package that serves as the basis for calculating the golden parachute payment was reasonable in light of performance and peers |
• | Whether the golden parachute payment will have the effect of rewarding a management team that has failed to effectively manage the company It may be difficult to anticipate the results of a plan until after it has been triggered; as a result, BIS may vote against a golden parachute proposal even if the golden parachute plan under review was approved by shareholders when it was implemented. |
We may support shareholder proposals requesting that implementation of such arrangements require shareholder approval.
Option exchanges
There may be legitimate instances where underwater options create an overhang on a company’s capital structure and a repricing or option exchange may be warranted. We will evaluate these instances on a case-by-case basis. BIS may support a request to reprice or exchange underwater options under the following circumstances:
• | The company has experienced significant stock price decline as a result of macroeconomic trends, not individual company performance |
• | Directors and executive officers are excluded; the exchange is value neutral or value creative to shareholders; tax, accounting, and other technical considerations have been fully contemplated |
• | There is clear evidence that absent repricing, employee incentives, retention, and/or recruiting may be impacted BIS may also support a request to exchange underwater options in other circumstances, if we determine that the exchange is in the best interests of shareholders. |
Supplemental executive retirement plans
BIS may support shareholder proposals requesting to put extraordinary benefits contained in supplemental executive retirement plans (“SERP”) to a shareholder vote unless the company’s executive pension plans do not contain excessive benefits beyond what is offered under employee-wide plans.
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Material sustainability-related risks and opportunities
It is our view that well-run companies, where appropriate, effectively evaluate and manage material sustainability-related risks and opportunities25 as a core component of their long-term value creation for shareholder and business strategy. At the board level, appropriate governance structures and responsibilities allow for effective oversight of the strategic implementation of material sustainability issues.
When assessing how to vote– including on the election of directors and relevant shareholder proposals – robust disclosures are essential for investors to understand, where appropriate, how companies are integrating material sustainability risks and opportunities across their business and strategic, long-term planning. Where a company has failed to appropriately provide robust disclosures and evidence of effective business practices, BIS may express concerns through our engagement and voting. As part of this consideration, we encourage companies to produce sustainability-related disclosures sufficiently in advance of their annual meeting so that the disclosures can be considered in relevant vote decisions.
We encourage disclosures aligned with the reporting framework developed by the Task Force on Climate-related Financial Disclosures (TCFD), supported by industry-specific metrics, such as those identified by the Sustainability Accounting Standards Board (SASB), now part of the International Sustainability Standards Board (ISSB) under the International Financial Reporting Standards (IFRS) Foundation.26 While the TCFD framework was developed to support climate-related risk disclosures, the four pillars of the TCFD – governance, strategy, risk management, and metrics and targets – are a useful way for companies to disclose how they identify, assess, manage, and oversee a variety of sustainability-related risks and opportunities. SASB’s27 industry-specific metrics are beneficial in helping companies identify key performance indicators (“KPIs”) across various dimensions of sustainability that are considered to be financially material. We recognize that some companies may report using different standards, which may be required by regulation, or one of a number of private standards. In such cases, we ask that companies highlight the metrics that are industry- or company-specific.
25 | By material sustainability-related risks and opportunities, we mean the drivers of risk and value creation in a company’s business model that have an environmental or social dependency or impact. Examples of environmental issues include, but are not limited to, water use, land use, waste management, and climate risk. Examples of social issues include, but are not limited to, human capital management, impacts on the communities in which a company operates, customer loyalty, and relationships with regulators. It is our view that well-run companies will effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses. Governance is the core means by which boards can oversee the creation of durable, long-term value. Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a sound governance framework. |
26 | The International Financial Reporting Standards (IFRS) Foundation announced in November 2021 the formation of an International Sustainability Standards Board (ISSB) to develop a comprehensive global baseline of high-quality sustainability disclosure standards to meet investors’ information needs. SASB standards will over time be adapted to ISSB standards but are the reference reporting tool in the meantime. |
27 | The ISSB has committed to build upon the SASB standards, which identify material, sustainability-related disclosures across sectors. SASB Standards can be used to provide a baseline of investor-focused sustainability disclosure and to implement the principles-based framework recommended by the TCFD, which is also incorporated into the ISSB’s Climate Exposure Draft. Similarly, SASB Standards enable robust implementation of the Integrated Reporting Framework, providing the comparability sought by investors. |
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We look to companies to:
• | Disclose the identification, assessment, management, and oversight of material sustainability-related risks and opportunities in accordance with the four pillars of TCFD |
• | Publish material, investor-relevant, industry-specific metrics and rigorous targets, aligned with SASB (ISSB) or comparable sustainability reporting standards |
Companies should also disclose any material supranational standards adopted, the industry initiatives in which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors understand their approach to sustainable and responsible business conduct.
Climate risk
It is our view that climate change has become a key factor in many companies’ long-term prospects. As such, as long-term investors, we are interested in understanding how companies may be impacted by material climate-related risks and opportunities—just as we seek to understand other business-relevant risks and opportunities—and how these factors are considered within their strategy in a manner that is consistent with the company’s business model and sector. Specifically, we look for companies to disclose strategies that they have in place that mitigate and are resilient to any material risks to their long-term business model associated with a range of climate-related scenarios, including a scenario in which global warming is limited to well below 2°C, and considering global ambitions to achieve a limit of 1.5°C.28 It is, of course, up to each company to define their own strategy: that is not the role of BlackRock or other investors.
BIS recognizes that climate change can be challenging for many companies, as they seek to drive long-term value by mitigating risks and capturing opportunities. A growing number of companies, financial institutions, as well as governments, have committed to advancing decarbonization in line with the Paris Agreement. There is growing consensus that companies can benefit from the more favorable macro-economic environment under an orderly, timely, and equitable global energy transition.29 Yet, the path ahead is deeply uncertain and uneven, with different parts of the economy moving at different speeds.30 Many companies are asking what their role should be in contributing to an orderly and equitable transition—in ensuring a reliable energy supply and energy security and in protecting the most vulnerable from energy price shocks and economic dislocation. In this context, we encourage companies to include in their disclosures a business plan for how they intend to deliver long-term financial performance through a transition to global net zero carbon emissions, consistent with their business model and sector.
We look to companies to disclose short-, medium-, and long-term targets, ideally science-based targets where these are available for their sector, for Scope 1 and 2 greenhouse gas emissions (GHG)
28 | The global aspiration to achieve a net-zero global economy by 2050 is reflective of aggregated efforts; governments representing over 90% of GDP have committed to move to net-zero over the coming decades. In determining how to vote on behalf of clients who have authorized us to do so, we look to companies only to address issues within their control and do not anticipate that they will address matters that are the domain of public policy. |
29 | For example, BlackRock’s Capital Markets Assumptions anticipate 25 points of cumulative economic gains over a 20-year period in an orderly transition as compared to the alternative. This better macro environment will support better economic growth, financial stability, job growth, productivity, as well as ecosystem stability and health outcomes. |
30 | https://www.blackrock.com/corporate/literature/whitepaper/bii-managing-the-net-zero-transition-february-2022.pdf |
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reductions and to demonstrate how their targets are consistent with the long-term economic interests of their shareholders. Many companies have an opportunity to use and contribute to the development of low carbon energy sources and technologies that will be essential to decarbonizing the global economy over time. We also recognize that continued investment in traditional energy sources, including oil and gas, is required to maintain an orderly and equitable transition—and that divestiture of carbon-intensive assets is unlikely to contribute to global emissions reductions. We encourage companies to disclose how their capital allocation to various energy sources is consistent with their strategy.
At this stage, we view Scope 3 emissions differently from Scopes 1 and 2, given methodological complexity, regulatory uncertainty, concerns about double-counting, and lack of direct control by companies. While we welcome any disclosures and commitments companies choose to make regarding Scope 3 emissions, we recognize that these are provided on a good-faith basis as methodology develops. Our publicly available commentary provides more information on our approach to climate risk and the global energy transition.
Natural capital
The management of nature-related factors is increasingly a core component of some companies’ ability to generate sustainable, long-term financial returns for shareholders, particularly where a company’s strategy is heavily reliant on the availably of natural capital, or whose supply chains are exposed to locations with nature-related risks. We look for such companies to disclose31 how they consider their reliance and use of natural capital, including appropriate risk oversight and relevant metrics and targets, to understand how these factors are integrated into strategy. We will evaluate these disclosures to inform our view of how a company is managing material nature-related risks and opportunities, as well as in our assessment of relevant shareholder proposals. Our publicly available commentary provides more information on our approach to natural capital.
Key stakeholder interests
In order to deliver long-term value for shareholders, companies should also consider the interests of their key stakeholders. While stakeholder groups may vary across industries, they are likely to include employees; business partners (such as suppliers and distributors); clients and consumers; government and regulators; and the constituents of the communities in which a company operates. Companies that build strong relationships with their key stakeholders are more likely to meet their own strategic objectives, while poor relationships may create adverse impacts that expose a company to legal, regulatory, operational, and reputational risks.
Companies should effectively oversee and mitigate material risks related to stakeholders with appropriate due diligence processes and board oversight. Where we determine that company is not appropriately considering their key stakeholder interests in a way that poses material financial risk to the company and its shareholders, we may vote against relevant directors or support shareholder proposals related to these topics. Our publicly available commentary provides more information on our approach.
Conversely, we note that some shareholder proposals seek to address topics that are clearly within the purview of certain stakeholders. For example, we recognize that topics around taxation and tax reporting are within the domain of local, state, and federal authorities. BIS will generally not support these proposals.
31 | While guidance is still under development for a unified disclosure framework related to natural capital, the emerging recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD), may prove useful to some companies. |
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Human capital management
A company’s approach to human capital management (“HCM”) is a critical factor in fostering an inclusive, diverse, and engaged workforce, which contributes to business continuity, innovation, and long-term value creation. Consequently, we ask companies to demonstrate a robust approach to HCM and provide shareholders with disclosures to understand how their approach aligns with their stated strategy and business model.
Clear and consistent disclosures on these matters are critical for investors to make an informed assessment of a company’s HCM practices. Companies should disclose the steps they are taking to advance diversity, equity, and inclusion; job categories and workforce demographics; and their responses to the U.S. Equal Employment Opportunity Commission’s EEO-1 Survey. Where we believe a company’s disclosures or practices fall short relative to the market or peers, or we are unable to ascertain the board and management’s effectiveness in overseeing related risks and opportunities, we may vote against members of the appropriate committee or support relevant shareholder proposals. Our publicly available commentary provides more information on our approach to HCM.
Corporate political activities
Companies may engage in certain political activities, within legal and regulatory limits, in order to support public policy matters material to the companies’ long-term strategies. These activities can also create risks, including: the potential for allegations of corruption; certain reputational risks; and risks that arise from the complex legal, regulatory, and compliance considerations associated with corporate political spending and lobbying activity. Companies that engage in political activities should develop and maintain robust processes to guide these activities and mitigate risks, including board oversight.
We depend on companies to provide accessible and clear disclosures so that investors can easily understand how their political activities support their long-term strategy, including on stated public policy priorities. When presented with shareholder proposals requesting increased disclosure on corporate political activities, BIS will evaluate publicly available information to consider how a company’s lobbying and political activities may impact the company. We will also evaluate whether there is general consistency between a company’s stated positions on policy matters material to their strategy and the material positions taken by significant industry groups of which they are a member. We may decide to support a shareholder proposal requesting additional disclosures if we identify a material inconsistency or feel that further transparency may clarify how the company’s political activities support its long-term strategy. Our publicly available commentary provides more information on our approach to corporate political activities.
General corporate governance matters
IPO governance
Boards should disclose how the corporate governance structures adopted upon a company’s initial public offering (“IPO”) are in shareholders’ best long-term interests. We also ask boards to conduct a regular review of corporate governance and control structures, such that boards might evolve foundational corporate governance structures as company circumstances change, without undue costs and disruption to shareholders. In our letter on unequal voting structures, we articulate our view that “one vote for one share” is the preferred structure for publicly-traded companies. We also recognize the potential benefits of dual class shares to newly public companies as they establish themselves; however, these structures should have a specific and limited duration. We will generally engage new companies on topics such as classified boards and supermajority vote provisions to amend bylaws, as we think that such arrangements may not be in the best interests of shareholders over the long-term.
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We may apply a one-year grace period for the application of certain director-related guidelines (including, but not limited to, responsibilities on other public company boards and board composition concerns), during which we ask boards to take steps to bring corporate governance standards in line with our policies.
Further, if a company qualifies as an emerging growth company (an “EGC”) under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), we will give consideration to the NYSE and NASDAQ governance exemptions granted under the JOBS Act for the duration such a company is categorized as an EGC. An EGC should have an independent audit committee by the first anniversary of its IPO, with our standard approach to voting on auditors and audit-related issues applicable in full for an EGC on the first anniversary of its IPO.
Corporate form
Proposals to change a corporation’s form, including those to convert to a public benefit corporation (“PBC”) structure, should clearly articulate the stakeholder groups the company seeks to benefit and provide detail on how the interests of shareholders would be augmented or adversely affected with the change to a PBC. These disclosures should also include the accountability and voting mechanisms that would be available to shareholders. We generally support management proposals to convert to a PBC if our analysis indicates that shareholders’ interests are adequately protected. Corporate form shareholder proposals are evaluated on a case-by-case basis.
Exclusive forum provisions
BIS generally supports proposals to seek exclusive forum for certain shareholder litigation. In cases where a board unilaterally adopts exclusive forum provisions that we consider unfavorable to the interests of shareholders, we will vote against the Independent Chair or Lead Independent director and members of the nominating/governance committee.
Reincorporation
We will evaluate the economic and strategic rationale behind the company’s proposal to reincorporate on a case-by-case basis. In all instances, we will evaluate the changes to shareholder protections under the new charter/articles/bylaws to assess whether the move increases or decreases shareholder protections. Where we find that shareholder protections are diminished, we may support reincorporation if we determine that the overall benefits outweigh the diminished rights.
Multi-jurisdictional companies
Where a company is listed on multiple exchanges or incorporated in a country different from their primary listing, we will seek to apply the most relevant market guideline(s) to our analysis of the company’s governance structure and specific proposals on the shareholder meeting agenda. In doing so, we typically consider the governance standards of the company’s primary listing, the market standards by which the company governs themselves, and the market context of each specific proposal on the agenda. If the relevant standards are silent on the issue under consideration, we will use our professional judgment as to what voting outcome would best protect the long-term economic interests of investors. Companies should disclose the rationale for their selection of primary listing, country of incorporation, and choice of governance structures, particularly where there is conflict between relevant market governance practices.
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Adjourn meeting to solicit additional votes
We generally support such proposals unless the agenda contains items that we judge to be detrimental to shareholders’ best long-term economic interests.
Bundled proposals
Shareholders should have the opportunity to review substantial governance changes individually without having to accept bundled proposals. Where several measures are grouped into one proposal, BIS may reject certain positive changes when linked with proposals that generally contradict or impede the rights and economic interests of shareholders.
Other business
We oppose voting on matters where we are not given the opportunity to review and understand those measures and carry out an appropriate level of shareholder oversight.
Shareholder protections
Amendment to charter/articles/bylaws
Shareholders should have the right to vote on key corporate governance matters, including changes to governance mechanisms and amendments to the charter/articles/bylaws. We may vote against certain directors where changes to governing documents are not put to a shareholder vote within a reasonable period of time, particularly if those changes have the potential to impact shareholder rights (see “Director elections”). In cases where a board’s unilateral adoption of changes to the charter/articles/ bylaws promotes cost and operational efficiency benefits for the company and its shareholders, we may support such action if it does not have a negative effect on shareholder rights or the company’s corporate governance structure.
When voting on a management or shareholder proposal to make changes to the charter/articles/ bylaws, we will consider in part the company’s and/or proponent’s publicly stated rationale for the changes; the company’s governance profile and history; relevant jurisdictional laws; and situational or contextual circumstances which may have motivated the proposed changes, among other factors. We will typically support amendments to the charter/articles/bylaws where the benefits to shareholders outweigh the costs of failing to make such changes.
Proxy access
It is our view that long-term shareholders should have the opportunity, when necessary and under reasonable conditions, to nominate directors on the company’s proxy card.32 Securing the right of shareholders to nominate directors without engaging in a control contest can enhance shareholders’ ability to meaningfully participate in the director election process, encourage board attention to shareholder interests, and provide shareholders an effective means of directing that attention where it is lacking. Proxy access mechanisms should provide shareholders with a reasonable opportunity to use this right without stipulating overly restrictive or onerous parameters for use, and also provide assurances that the mechanism will not be subject to abuse by short-term investors, investors without a substantial investment in the company, or investors seeking to take control of the board.
32 | BlackRock is subject to certain regulations and laws in the United States that place restrictions and limitations on how BlackRock can interact with the companies in which we invest on behalf of our clients, including our ability to submit shareholder proposals or elect directors to the board. |
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In general, we support market-standardized proxy access proposals, which allow a shareholder (or group of up to 20 shareholders) holding three percent of a company’s outstanding shares for at least three years the right to nominate the greater of up to two directors or 20% of the board. Where a standardized proxy access provision exists, we will generally oppose shareholder proposals requesting outlier thresholds.
Right to act by written consent
In exceptional circumstances and with sufficiently broad support, shareholders should have the opportunity to raise issues of substantial importance without having to wait for management to schedule a meeting. Accordingly, shareholders should have the right to solicit votes by written consent provided that: 1) there are reasonable requirements to initiate the consent solicitation process(in order to avoid the waste of corporate resources in addressing narrowly supported interests); and 2) shareholders receive a minimum of 50% of outstanding shares to effectuate the action by written consent.
We may oppose shareholder proposals requesting the right to act by written consent in cases where the proposal is structured for the benefit of a dominant shareholder to the exclusion of others, or if the proposal is written to discourage the board from incorporating appropriate mechanisms to avoid the waste of corporate resources when establishing a right to act by written consent. Additionally, we may oppose shareholder proposals requesting the right to act by written consent if the company already provides a shareholder right to call a special meeting that offers shareholders a reasonable opportunity to raise issues of substantial importance without having to wait for management to schedule a meeting.
Right to call a special meeting
In exceptional circumstances and with sufficiently broad support, shareholders should have the opportunity to raise issues of substantial importance without having to wait for management to schedule a meeting. Accordingly, shareholders should have the right to call a special meeting in cases where a reasonably high proportion of shareholders (typically a minimum of 15% but no higher than 25%) are required to agree to such a meeting before it is called. However, we may oppose this right in cases where the proposal is structured for the benefit of a dominant shareholder, or where a lower threshold may lead to an ineffective use of corporate resources. We generally think that a right to act via written consent is not a sufficient alternative to the right to call a special meeting.
Consent solicitation
While BlackRock is supportive of the shareholder rights to act by written consent and call a special meeting, BlackRock is subject to certain regulations and laws that place restrictions and limitations on how BlackRock can interact with the companies in which we invest on behalf of our clients, including our ability to participate in consent solicitations. As a result, BlackRock will generally not participate in consent solicitations or related processes. However, once an item comes to a shareholder vote, we uphold our fiduciary duty to vote in the best long-term interests of our clients, where we are authorized to do so.
Simple majority voting
We generally favor a simple majority voting requirement to pass proposals. Therefore, we will generally support the reduction or the elimination of supermajority voting requirements to the extent that we determine shareholders’ ability to protect their economic interests is improved. Nonetheless, in
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situations where there is a substantial or dominant shareholder, supermajority voting may be protective of minority shareholder interests, and we may support supermajority voting requirements in those situations.
Virtual meetings
Shareholders should have the opportunity to participate in the annual and special meetings for the companies in which they are invested, as these meetings facilitate an opportunity for shareholders to provide feedback and hear from the board and management. While these meetings have traditionally been conducted in-person, virtual meetings are an increasingly viable way for companies to utilize technology to facilitate shareholder accessibility, inclusiveness, and cost efficiencies. Shareholders should have a meaningful opportunity to participate in the meeting and interact with the board and management in these virtual settings; companies should facilitate open dialogue and allow shareholders to voice concerns and provide feedback without undue censorship. Relevant shareholder proposals are assessed on a case-by-case basis.
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