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        Insight
        Insights   •   Asset Stewardship

        Transparency in Pay Evaluation: Adoption of Abstain as a Vote Option on Management Compensation Resolutions

        • State Street Global Advisors’ Asset Stewardship Team adds an ‘Abstain’ option for proxy votes on management compensation.
        • The addition is intended to promote further engagement on pay proposals.

        Key Takeaways

        • Ahead of the 2018 proxy season, State Street Global Advisors announced that in addition to the use of ‘For’ and ‘Against’ vote options on management compensation resolutions we will introduce an ‘Abstain’ vote, in situations when we cannot provide unqualified support for compensation proposals globally.
        • We believe that this change will result in companies being more responsive to our vote on pay proposals and subsequent engagement efforts, thereby improving impact.
        • We cannot predict all instances when we will use an ‘Abstain’ vote but based on past practice typical cases would include:

        – Large one-time payments that cannot be justified or explained

        – Lack of adequate disclosure or some concerns with performance metrics but recognition of strong long-term performance etc.

        – Where companies have responded to some but not all of our concerns.

        • There will be no change to State Street Global Advisors’ Asset Stewardship Team’s evaluation of compensation votes.

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        This website is intended for persons resident in Australia. State Street Global Advisors, Australia Services Limited ABN 16 108 671 441, AFSL Number 274900 ("SSGA, ASL") is the product issuer. State Street Global Advisors, Australia, Limited (AFSL Number 238276, ABN 42 003 914 225) (“SSGA Australia”) is the Investment Manager. The material on this website is general information only and does not take into account your individual objectives, financial situation or needs.

        You should seek professional advice and consider the Product Disclosure Statement (PDS) and target market determination, available at www.ssga.com, before deciding whether to acquire or continue to hold units in the Funds.

        You can access our PDS online or by calling us. The offer made in our PDS is available to persons receiving the PDS within Australia and applications from outside Australia will not be accepted. Past performance is not a reliable indicator of future performance. Investing entails risks and there can be no assurance that State Street Global Advisors will achieve profits or avoid incurring losses.

        Investing involves risk including the risk of loss of principal. This material should not be considered a solicitation to apply for interests in the Funds and investors should obtain independent financial and other professional advice before making investment decisions. There is no representation or warranty as to the currency or accuracy of, nor liability for, decisions based on such information. Performance quoted represents past performance, which is not a reliable indicator of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted.

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