The National Pension Service has exercised its shareholder rights more actively since it adopted the stewardship code in 2018, said a local corporate tracker.

On Wednesday, CEO Score released the results of a survey of 577 companies in which the NPS held shares and exercised its voting rights at shareholders meetings last year.

It found that the NPS voted against initiatives proposed by companies 16.48 percent of the time, up from 11.85 percent a year earlier. The rate at which it approved proposals decreased from 87.34 percent to 83.11 percent during the same time frame.

The proposals that generated the most opposition from the NPS had to do with compensation for directors and auditors, with the NPS voicing opposition 28.98 percent of the time. Next were proposals to grant stock options, appoint members to audit committees, change the companies’ corporate articles and reduce capital, all of which the pension body opposed at least 10 percent of the time.

In July 2018, the NPS adopted the stewardship code, which sets forth guidelines for institutional investors so they can actively participate in corporate governance through voting rights in the interests of their beneficiaries. 

By Shin Ji-hye (shinjh@heraldcorp.com)