Jenner & Block

Client Alert: Incentivizing Shareholders to Vote – Tote Bag Anyone?

Prudential Financial, Inc. recently announced that, for the third consecutive year, it will encourage its registered shareholders to vote by offering each voting shareholder the choice of a tote bag or a tree planted in the shareholder’s name. Given the past success of Prudential’s program and the objective of many companies to increase shareholder engagement, voting incentive programs may seem poised to proliferate. However, as of yet, no other companies that we have identified have adopted a similar voting incentive program. This article discusses the reasons why companies might consider adopting a voting incentive program and the obstacles that they may face.