Broadridge Partnership and eToro Enable Proxy Voting

Tuesday, Israeli-based eToro announced a partnership with New York-based Broadridge Financial Solutions (NYSE: BR) to enable proxy voting for the retail broker's clients. EToro will gather and aggregate all investor votes before sharing them with the respective enterprises.

The agreement would enable eToro users, including fractional shareholders, to participate in annual general meetings (AGMs) by casting proxy votes. They have the ability to vote on business choices such as mergers, executive compensation, environmental concerns, and social and governance proposals.

First, the broker will provide proxy voting for U.S.-listed companies, and then it will roll out the capability to other worldwide exchanges.

"Over the past few years, the number of retail investors has exploded. This group has the potential to have a significant impact on financial markets, according to Yoni Assia, co-founder and chief executive officer of eToro.

"Because of our cooperation with Broadridge, eToro users may now participate in business decision-making at several of the world's largest corporations. This is a major turning point in the history of retail investors that could have a lasting impact on the corporate world."

The new feature was enabled a few weeks after eToro purchased Bullsheet, an exclusive provider of portfolio management solutions for eToro users, which will further enhance the user experience.

Additionally, the broker enabled proxy voting due to the increasing number of retail brokers. A broker poll of 10,000 retail investors revealed that 73% desire AGM voting participation. Additionally, younger investors are more likely to participate in such decision-making activities than their elder counterparts.

In addition, the majority of retail investors are most interested in dividend decisions, followed by CEO compensation and climate plans.

This has not always been the case, but this is fast changing, and retail investor access to proxy voting is a vital step along the path. Clearly, retail investors are eager to participate in AGMs, and we look forward to watching how eToro clients utilize this new tool," Assia explained.

Broadridge is a provider of financial infrastructure for clients such as banks, broker-dealers, asset and wealth managers, and public businesses. It boosted its market reach by $2.5 billion by acquiring the trading connectivity and technology company Itiviti in 2017.

In addition, in October of last year, the New York-based company increased its global reach by increasing its solutions for custodians and local agents in Switzerland. In the fourth quarter of the company's fiscal year 2022, revenue increased by 12 percent to reach $1.7 billion, while operating income reached $342 million.

Broadridge's President of Bank Broker-Dealer Investor Communication Solutions, commenting on the eToro partnership, stated, "We are excited to be supporting eToro and helping them shape the future of corporate governance with our advanced proxy voting solution while empowering their clients with a differentiated service proposition."