NYSE Proposal Endorses Proxy Fee Increase

The NYSE proposes a beneficial holder proxy fee increase to be charged to issuers by brokers (Broadridge). These proposals result in several fee increases that affect both large and small issuers. Here are some of the notable changes and increases:

  • Intermediary Unit Fees – There was a 28% increase for issuers with under 10,000 accounts.
  • Paper and Postage Elimination Fees – There was a 7% increase for issuers with more than 200,000 accounts.
  • Registered vs. Beneficial Shareholder Fees – Registered shareholder fees charged by transfer agents were 40% less than the proxy fees being charged to provide the same services for beneficial owners.
  • Separately Managed and Wrap Fee Accounts – For a number of years, Broadridge and its broker-dealer clients have been charging issuers a series of proxy fees for separately managed accounts at the beneficial owner level. These fees are being charged despite the fact that investors in these accounts are not receiving—or expecting to receive—any proxy materials and are not casting any proxy votes. The NYSE PFAC believes that wrap fee accounts should remain on issuer invoices as billable positions.
  • Nominee Coordination Fees – There was a 10% increase from $20 to $22 for each nominee holding of at least one share of an issuer’s stock. According to the NYSE there are 900 bank and brokers that have to be contacted with each request. DTC charges only $0.75 to identify holders on the record date of a proxy and only $0.18 to $0.34 to transmit and deliver messages.
  • Notice and Access Fees – These fees are not included in the regulated NYSE proposals, but have increased by 0.51% as seen in recent studies.

In response to the fee increases, Colonial Stock Transfer created a managed proxy service to help reduce the costs associated with a Proxy by 40-65% including:

  • A Dedicated Proxy Manager;
  • NOBO/OBO Oversight and Management;
  • Online Voting, Management and Tabulation; and
  • Printing & Delivering Materials.

Colonial Stock Transfer has performed hundreds of managed proxies with the average customer experiencing a significant savings. Call 877-285-8605 to speak with a representative about Colonial’s Shareholder Meeting Services.

Related Articles: STA Comments and Rebutes NYSE Proposal on Proxy Fee Increases


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