News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Pensions

Meet the new corporate power brokers: Passive investors

Managers such as Vanguard often cast deciding shareholder votes on issues such as mergers and leadership changes

BlackRock has the world’s largest exchange-traded-fund business
BlackRock has the world’s largest exchange-traded-fund business

Investor Jeffrey Osher and his advisers arrived at the May annual meeting of Green Dot Corp, a prepaid-card company, thinking they had enough votes to remove its chief executive from the board.

In the parking lot, they discovered that was no longer true. Index-fund giant Vanguard Group, the fourth-biggest shareholder, changed its vote over the prior weekend to support the CEO.

WSJ Logo