Mutual fund companies overwhelmingly vote in line with the recommendations of management at the firms in which they are invested. In 2005, funds voted with management 92% of the time, overwhelmingly rejecting shareholder proposals from unions, pensions and other stock owners, a study of the voting records of eight of the largest fund companies in the Boston area conducted by The Corporate Library for Boston Business Journal shows. Typically, those shareholder recommendations concern executive pay and voting rules.

In fact, the study showed that funds rejected 71% of shareholder proposals on director and executive compensation last year.

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