Named after small insects that bite and annoy livestock, the gadfly looks to irritate a corporation's management until it acts or compromises on shareholder concerns. Together, John Chevedden, William Steiner and James McRitchie were responsible for one-third of shareholder proposals introduced through mid-2015. Our in-depth tools give millions of people across the globe highly detailed and thoroughly explained answers to their most important financial questions. Another popular topic in 2016 was reporting on and managing risks related to climate change, which accounted for votes on more than 175 resolutions. Each month, more than 1 million visitors in 223 countries across the globe turn to InvestingAnswers. You can complete the definition of gadfly given by the English Definition dictionary with other English dictionaries: Wikipedia, Lexilogos, Oxford, Cambridge, Chambers Harrap, Wordreference, Collins Lexibase dictionaries, Merriam Webster. We provide the most comprehensive and highest quality financial dictionary on the planet, plus thousands of articles, handy calculators, and answers to common financial questions -- all 100% free of charge.
Search gadfly and thousands of other words in English definition and synonym dictionary from Reverso. Proponents of contend corporate gadflies are at the heart of a rising shareholder democracy that focuses attention on key issues that would otherwise remain obscured. Critics of shareholder activism point to the enormous cost incurred by companies to respond to shareholder proposals. The term gets its name from the insect, which bites and annoys animals usually livestock. That is, the gadfly may question executive pay, ask why a was not larger when it could have been, and may also generally point out issues about which other shareholders may not be aware. Davis, who spent 40 years confronting managers at annual meetings regarding their compensation and performance.
Sometimes she wore costumes and bathing suits in the meetings to get attention. Because most proposals raise issues company management tend to avoid, they often trigger a confrontation, forcing management to urge the shareholder base to vote it down or act on a compromise. A slightly derogatory term for a who attends and asks the executives difficult questions. A growing focus for gadflies is on the issue of board diversity, coupled with a study by Credit Suisse showing that companies with at least one woman on their boards outperformed those with none by nearly 40 percent between 2006 and 2016. Although institutions such as are active in submitting shareholder proposals, in 2014 and 2015, the largest number of proposals has been concentrated among a small group of individuals who may be motivated by personal interests. Questions regarding or inconvenient locations are often brought to light by a gadfly. Obviously, many executives do not like the presence of gadflies, though shareholders may find them useful.
Most proposals center on environmental concerns, , corporate political spending or , executive compensation, access, special meetings, or voting rules. . In 2016, there were about 1,000 shareholder proposals filed in the United States, of which about 400 were on social and environmental issues. In one instance, she badgered the board of Bristol-Myers Squibb to change its to require annual elections for all board members. Gadflies play a key role in empowering small investors against corporate managers who may not be acting in their best interests. The contention among some critics is a number of individual activists are acting on behalf of in an effort to demonstrate shareholder populism for union issues. There are many famous , but one of the most notable was Evelyn Y.
She was able to get Dow Jones and a firm to follow suit as well. Proposals offered by shareholders must be placed on the agenda and offered up for a vote at the next annual shareholders' meeting. Most gadflies tend to focus on issues of a religious, public policy or social investing nature, but issues centering on corporate governance policies, such as executive compensation, are more likely to gain traction with voting shareholders. A gadfly adds value for other shareholders by vocalizing his concerns and inciting action. Such investors are activist shareholders who advocate for changes in corporate governance by offering proposals for votes at annual meetings. .
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