"The controversial practice of broker voting is once again in the spotlight, thanks to Washington Mutual's highly contentious annual shareholder meeting earlier this month."

"With this year's proxy season in full swing, investors are demanding an explanation of loans that not only hurt home buyers but also trashed the balance sheets of many companies that provided the funds. "CtW Investment Group, for one, is suggesting that union pension plans it advises vote against certain directors of huge financial-services concerns tied to the foreclosure crisis."

“Merrill Lynch is proposing that from next year all board members are elected annually for one-year terms following a campaign led by CtW Investment Group, an umbrella body representing union pension funds, against banks that have written down billions of dollar related to the credit crisis. “In January, CtW Investment Group had written to four Merrill directors asking them to describe what they did to protect shareholders from excessive mortgage-related risk over the past two years.”

“Only people who have decided to vote and who are the direct owners of a company's shares should have a say in who represents them on the board of directors. “That isn't now the case. In a testament to how long some corporate governance controversies can bounce around, the so-called 'broker vote' issue is still alive if not altogether well after years of debate. It should have long ago been relegated to history. Instead, it's become part of a high-profile debate between activist shareholders and the big thrift Washington Mutual Inc.”