Voting decisions are taken in-house by the independent corporate governance team. Our structure and conflicts of interest policy ensures that, where the corporate governance and active equity team do not agree on voting issues, these can be escalated at board level.
Decisions are primarily based on LGIM’s policies which set out our position and expectations on key governance topics, based on regulation, best practice and clients’ beliefs. They are available on our website. We also take into account previous engagement with the company, present circumstances, third-party research, collaboration with global investors.
All voting decisions are made by LGIM. The instructions are sent to appropriate custodians through the ISS voting platform. All our votes are saved on the platform. This allows us to keep all our voting history, and use the information when reporting to stakeholders on our voting activity.
We report on our voting activity regularly, including publicly within a month of the shareholder meeting.
We operate a stock-lending programme in selective overseas equity markets under strict conditions. We do not currently engage in stock lending in the UK. More information is available in the policy section of our website.