The value of voting: proxy voting is your chance to have a say in the management of the companies you invest in. (Black Wealth Initiative).

YOU MIGHT CALL DR. HENRY S. WILLIAMS AT&T'S LESS-than-silent partner. The 72-year-old retired radiologist monitors the company from his Beverly Hills home. He voted for the wireless spin-off and has a hand in making several other decisions, including how chairman and CEO C. Michael Armstrong should be compensated. Williams, like all investors, is entitled to do all this simply because he owns stock in the company. He exercises these privileges because he takes advantage of a valuable process that many investors typically ignore: proxy voting.

Once a year, companies send shareholders proxy statements and a ballot along with their annual reports, in effect allowing investors to vote on how the company should be run (through the board of directors who represent them) without investors having to attend shareholder meetings. Proxy statements typically cover at least two issues: election of the board of directors and a vote for an outside auditor. Other issues include management compensation, stock splits and stock option plans, and, occasionally, social and environmental concerns. "Proxy voting is part of your right as a shareholder and is considered by some to be a part of the asset of the stock," says Ann Yerger, director of research at the Council of Institutional Investors, an association of pension funds in Washington, D.C. "It's a way for investors to make a difference."

Williams began investing in 1949 and has been voting by proxy for over 40 years. Like many investors, he reads the Wall Street Journal, watches CNBC, and keeps abreast of new developments concerning his companies. What makes him unique is the amount of time he spends gathering information--about four hours every day. "If you have money invested, then you ought to read about your company so that you know what's going on," he says.

For example, Williams was concerned about AT&T selling its broadband division, which would lower the value of his stock Unwilling to wait for a deal to be finalized, he sold his broadband shares, Part of Williams' strategy is simple: he will stick with a company as long as he agrees with management's proposals, and sell when they make decisions he deems unprofitable.

Many investors ignore proxies, often citing lack of time for filling them out. But by not voting, an investor is casting a vote for management, and the decisions made are not always in the shareholder's best interest. "Companies make it very easy to just sign proxies over to them," says Williams. That should not be the case, as proxy voting is a simple process and one that embodies DOFE Principle No. 2: to be a proactive and informed investor.

* READ ANNUAL REPORTS AND KEEP ABREAST OF COMPANY DEVELOPMENTS

"Successful investors always read the annual report," says Williams. "In fact, you should read past reports even before buying stocks." Deborah Pastor, a vice president at eRaider.com, a site that uses Internet message boards to lobby for shareholder rights, suggests that investors keep up on social issues as well as business news.

* KEEP YOUR INVESTMENTS MANAGEABLE

Williams never owns stock in more than three companies at a time. He keeps the numbers low so that he has the time to follow each company's development. He also keeps an eye on other options so that he can invest his money elsewhere should the need arise. Currently, Williams has shares in AT&T Wireless (NYSE: AWE) and AOL Time Warner (NYSE: AOL). He is also invested in a private placement. Advanced Bionics, a small biotech company in Sylmar, California.

* DON'T RELY ON YOUR BROKER

The broker may be your advisor when it comes to buying and selling stock, but not when it comes to proxies. "They have no legal responsibility to decide what's best for the shareholder," says Pastor. "The broker merely serves an executorial role and usually sides with management." If you invest in mutual funds, fund managers normally vote in your best interests since they are compensated based on the performance of the portfolio.

* VOTE

"If you own just one share, you should vote," says Williams. If you own 100 shares, you'll be casting 100 votes.) Voting can make a difference. Pastor cites the example of Jill Barad, former Mattel CEO who received almost $50 million when she was ousted in February 2000 due to poor performance: "Why did she get five times her salary for failing? Well, shareholders must have approved that golden parachute, and a big chunk of their money went out of the value of their stock and into Jill Barad's pocket!"

The process is as simple as mailing in a form, or you can vote by phone or online at sites such as www.proxyvote.com and www.shareholderaction.org. And, of course, you can attend shareholders meetings in person to cast your vote. What you learn through the process will help you make better decisions about your stock.

Declaration Of Financial Empowerment

From this day forward, I declare my vigilant and lifelong commitment to financial empowerment. I pledge the following:

1 To save and invest 10% to 15% of my after-tax income

2 To be a proactive and informed investor

3 To be a disciplined and knowledgeable consumer

4 To measure my personal wealth by net worth, not income

5 To engage in sound budget, credit and tax management practices

6 To teach business and financial principles to my children

7 To use a portion of my personal wealth to strengthen my community

8 To support the creation and growth of profitable, competitive black-owned enterprises

9 To maximize my earning power through a commitment to career development, technological literacy and professional excellence

10 To ensure that my wealth is passed on to future generations