Brookfield's Ironclad Governance: A Fortress for Investors in Turbulent Times

The recent Annual General Meeting (AGM) of Brookfield Infrastructure Corporation (NYSE: BIPC) has sent a resounding message to investors: this is a company that's mastered the art of governance stability. With director approval rates soaring above 97%, and a voting structure that insulates it from activist noise, Brookfield is building a moat that could shield investors from market storms. Let me break down why this matters—and why you should consider taking a position.

The AGM Results: A Masterclass in Shareholder Alignment

At Brookfield's June 2025 AGM, shareholders rubber-stamped the board's slate of directors with overwhelming support. Even the “lowest” vote tally—97.22% for John Lacey—would make most CEOs green with envy. The average approval rate? A staggering 99.2%, with heavy hitters like Don Mackenzie securing nearly universal support. This isn't just about popularity; it's proof of a board that's earned trust through decades of outperformance.

But here's the kicker: this approval spans two shareholder classes. The Class A shares (25% voting power) and Class B shares (75% voting power) both delivered resounding yes votes. The Class B block, controlled by Brookfield Asset Management (BAM), acts as a stabilizing force, shielding the company from short-term activism while the Class A holders—representing public investors—still have a voice. This dual-class setup isn't a red flag; it's a strategic firewall against the kind of activist noise that's tanked peers like Blackstone and KKR.

Why the Voting Structure Works

Brookfield's governance isn't just about voting blocks—it's about time horizons. The 75% control of Class B shares ensures leadership can focus on decade-long projects in sectors like renewable energy, data centers, and healthcare infrastructure—assets that pay off slowly but steadily. Meanwhile, the 25% Class A votes keep management honest, as public investors demand returns.

This balance has paid off. Over the past five years, Brookfield has delivered a 142% total return, trouncing the S&P 500's 79% gain. That's no accident. The governance structure isn't just about control—it's about execution.

The Governance Overhaul: Smarter, Stronger, More Global

Earlier in 2025, Brookfield expanded its parent company's board from 12 to 14 directors, adding U.S.-based experts. This move, approved with 99.8% shareholder support, was a masterstroke. It addressed geographic gaps while doubling down on skills like tech and healthcare—sectors critical to future growth. The message? Brookfield isn't resting on its laurels; it's evolving to stay ahead of the curve.

The Money Math: Dividends, Valuation, and Resilience

Let's get to the numbers. Brookfield's Q1 2025 distributable earnings surged 30% year-over-year, fueled by its 97% recurring revenue from essential services. That's the beauty of owning data centers and healthcare facilities: demand stays steady even when the economy sputters. The dividend yield of 2.8% might not set the world on fire, but it's rock-solid—no cuts in over a decade.

Now, the valuation: At 15x EV/EBITDA, Brookfield isn't cheap. But here's the rub—this multiple is a fraction of what tech darlings or speculative REITs command. For a company with $916 billion in assets under management and a track record of turning infrastructure into gold, this isn't overvaluation. It's priced for patience.

The Risks? Yes, But Manageable

Critics will point to Brookfield's reliance on virtual shareholder meetings or the 25.86% withheld votes for one director (Justin B. Beper) in its sibling entity Brookfield Business Corporation (BBUC). But here's the reality: withheld votes in one subsidiary don't sink the ship. The 90%+ retention rate of top shareholders tells you what you need to know—this is a core holding for pension funds and endowments.

And while a 15x multiple might spook some, remember: Brookfield's assets are physical and essential. Unlike crypto or meme stocks, a data center in Texas isn't going to zero.

Action Alert: This Is a Buy-and-Hold Monster

If you're chasing moonshots, Brookfield isn't your play. But if you want a sleep-at-night investment that grows with the world's infrastructure needs, this is your ticket. Here's the plan:

1. Buy on dips: If BIPC slips below $25, pounce. The 12-month price target of $28–$30 is conservative given its earnings trajectory.
2. Lock in dividends: Reinvest those 2.8% payouts—they'll compound faster than you think.
3. Think long-term: Brookfield's governance structure ensures that management isn't chasing quarterly headlines. You're buying into a decade-long story.

Final Take

In an era of governance scandals and activist raids, Brookfield stands out. Its AGM results and voting structure aren't just numbers—they're proof of a company that's aligned with shareholders, insulated from chaos, and built to last. This isn't a get-rich-quick stock—it's a fortress. And in a market where volatility is the new normal, fortresses are exactly what investors need.

Bottom line: Brookfield Infrastructure is a buy for the next decade. Don't let the “expensive” valuation scare you—this is a company that's already paid its dues.