Wall Street giant Goldman Sachs has been given the green light to adopt a new program to more easily secure retail investor support in shareholder votes.
In a letter, the U.S. Securities and Exchange Commission (SEC) confirmed that it would not take enforcement action against Goldman Sachs Group, Inc. in connection with the proposed launch of a voting instruction program for retail investors modelled on an initiative launched by Exxon Mobil Corp. in 2025.
Goldman said that it is planning to implement a similar program to Exxon’s, with added features designed to enhance investor participation in the program.
The firm’s proposed program will be available to retail investors at no cost, including both registered shareholders and beneficial owners (via their bank, broker or plan administrator), it said.
Investors will have two options for aligning their voting with management — either on all issues, or on all issues except for contested director elections.
Under the program, retail investors will still be able to override the voting instruction by using the proxy materials they receive for the meeting, and they will receive annual reminders providing the opportunity to opt out of the program.
Additionally, the SEC noted that the firm is required to tell employees that their enrolment in the program won’t impact their compensation or career opportunities, and that it will adopt measures to prevent the misuse of employees’ enrolment status.