Responsible corporate governance depends on giving shareholders practical opportunities to make their voices heard. But while retail investors represent a meaningful portion of US public company ownership, their participation in proxy voting has historically trailed that of institutional investors.
Now, an innovation in proxy voting could help support broader retail participation: Standing Voting Instructions.
The concept is simple. Shareholders can set voting preferences in advance, and those preferences are automatically applied to future eligible matters. Shareholders still receive proxy materials, can review each meeting and may update, cancel, or override their instructions at any time.
For retail shareholders, this reduces the need to respond to each proxy event as it happens. For issuers, it offers a practical way to increase shareholder engagement while preserving investor choice and control.
At issue is how Standing Voting Instructions can support broader retail participation, what safeguards help preserve shareholder choice and what issuers should consider as they look to scale this new model.
Making retail participation more convenient
Many long-term retail shareholders care about the companies they own, but they may not engage with every proxy event in the same way institutions do. Proxy season competes with everyday demands on their attention, and each meeting requires a fresh moment of action.
Instead of asking shareholders to decide at every eligible meeting, standing instructions let investors set a preference once and have it applied automatically to future eligible matters, subject to important safeguards.
The result is a simpler path to participation without limiting shareholders’ ability to engage more deeply when they choose.
Safeguards that preserve shareholder choice
In September 2025, the SEC staff issued a no-action letter to ExxonMobil regarding a proposed retail voting program for Standing Voting Instructions. The program included several important safeguards for investors:
- Opt-in participation
- Continued receipt of proxy materials
- Annual reminders
- The ability for shareholders to cancel or override their standing instructions
These standards streamline voting while preserving the core principles of shareholder democracy: informed participation, voluntary choice and ongoing control.
For companies considering Standing Voting Instructions, success will depend on the shareholder experience. Instructions should be clear and concise. Enrollment should be convenient and simple. Investors should know which matters their preferences apply to, how long their selections remain in effect and how they can be updated or canceled.
When designed well, Standing Voting Instructions can reduce the effort required to participate without reducing the shareholder’s ability to make an informed and independent choice.
Early adoption shows retail investors will engage
Early results suggest meaningful interest. According to ExxonMobil’s 2026 proxy materials, more than 100,000 retail shareholders enrolled in standing instructions, representing more than 3 percent of outstanding shares and approximately 150 million shares engaged across all or select matters.
That response points to a predictable dynamic: greater convenience helps lead to greater shareholder participation.
For shareholders, the benefit is straightforward. Standing Voting Instructions provide a convenient way to have their preferences reflected on future eligible matters, without requiring them to start from scratch at every meeting.
For issuers, broader participation can support a more complete view of shareholder engagement. When more retail holders have a practical way to participate, companies can better understand how this important ownership base is engaging with governance matters over time.
Building standing instructions into the proxy process
Standing instructions will work best when they're built into the broader proxy process from the ground up, not treated as a standalone enrollment campaign.
That starts with legal and regulatory alignment. Issuers will need to evaluate how a standing instruction program interacts with federal proxy rules, state corporate law, exchange requirements and existing shareholder communications.
Operational planning matters as well. Issuers may need support delivering invitations, capturing enrollment and managing reminders.
Finally, enrollment materials should be easy to act on. Shareholders will need to understand how their standing instructions apply, how long they remain in effect and how to update or cancel them in the future.
Scaling standing instructions through existing infrastructure
In spring 2026, Broadridge launched a new Standing Voting Instructions solution to support the model at scale. The solution uses a digital landing page to facilitate quick, simple enrollment, allowing investors to set and manage preferences with minimal effort. Because Broadridge already manages shareholder data and the broader proxy infrastructure, the solution can be incorporated into existing proxy workflows rather than treated as a separate engagement effort.
The digital experience also helps preserve shareholder control. Investors can easily view and update their instructions, while maintaining access to proxy communications and investor materials.
That combination – convenient enrollment, preserved control and seamless integration – is what allows Standing Voting Instructions to move from an innovative governance concept to a practical issuer tool. As issuers look for scalable ways to strengthen retail participation, this kind of integrated model may become a new benchmark for shareholder engagement.
