TLDR:
Proxy voting allows a shareholder who cannot attend a company meeting to authorize another person or entity to vote on their behalf, commonly used in public company governance and investment fund management.
Proxy Voting in Corporate Governance Reform
Proxy voting has become a powerful tool for shareholder activism, with institutional investors and proxy advisory firms like ISS (Institutional Shareholder Services) and Glass Lewis using their influence to push for corporate governance reforms, executive compensation changes, environmental policies, and board diversity. Shareholders of public companies can submit ‘shareholder proposals’ through the proxy process, compelling companies to include these proposals in annual meeting materials for shareholder vote — a mechanism environmental and social activists have used effectively to influence corporate behavior.