eToro, Israeli social trading, and multi-asset investment company signed a partnership deal with Broadridge Financial Solutions. The deal will allow eToro users to exercise proxy voting.
In addition, eToro users will henceforth participate in annual general meetings by casting proxy votes. eToro users holding company shares will be allowed to participate in corporate decisions like executive pay, environmental arrangements, mergers, and administration proposals.
However, proxy voting, will not be exercised in all listed global exchanges, but it will start with US-listed exchanges before it is conveyed to other exchanges.
“In the last few years, we’ve seen an explosion in the number of retail investors. This group has the potential to have a major influence on financial markets,” eToro’s Co-Founder and CEO, Yoni Assia, said.
“Thanks to our partnership with Broadridge, eToro’s users can now have their say in corporate decision-making at many of the biggest companies in the world. This is a huge milestone in the retail investor story, and one that could have a lasting impact on the business world,” he added.
The eToro- Broadridge Financial Solutions partnership deal comes days after eToro acquired Bullsheet, a firm that will extend management tools to the broker users.
Reap Of Inclusivity
The decision to have the proxy voting feature activated was not agreed to by the eToro administration alone. The activity involved all stakeholders and users by circulating a survey to collect their views. Out of 10,000 retail investors who participated in the exercise, 73 percent voted in favor of having the feature active. In addition, young investors were more willing to take part in such ruling activities compared to older capitalists.
“Retail investors have not always been given the platform, the voice, and the support they deserve, but this is rapidly changing, and retail investor access to proxy voting is a crucial step in this journey. There is clearly, a huge appetite amongst retail investors to participate in AGMs, and we look forward to seeing how eToro clients engage with this new feature,” Assia noted.
The idea of activating proxy voting was not the only proposal that was aired but also a number of the survey participants proposed their interest in deciding on dividends and climate strategies.
Broadside, a financial framework provider, extended its market by obtaining Itiviti, a trading connectivity and technology provider for $2.5billion. Its revenue for the fourth quarter of the year jumped by 12 percent compared to the same time in 2021.
“We are excited to be supporting eToro and helping them shape the future of corporate governance through our advanced proxy voting solution while empowering their clients through a differentiated service proposition,” Broadside’s President said.
