Unions strategically withdraw shareholder proposals, impacting corporate governance and shareholder value.
Shareholder proposals are often withdrawn by unions, especially in firms with poor performance and independent boards. Unions tend to resubmit proposals with high shareholder support from the previous year, but many are withdrawn before annual meetings, indicating issues have been resolved. Unions strategically use proposals to benefit union workers over shareholder value, especially when prior support is high and insider ownership is low.