But the leading U.S. index fund firms, BlackRock Inc (BLK.N), Vanguard Group and State Street Corp (STT.N), rarely use that clout. Instead, they overwhelmingly support the decisions and pay packages of executives at the companies in their portfolios, including the worst performers, according to a Reuters analysis of their shareholder-voting records.

The three fund firms, for instance, supported doubling the pay of the chief executive at California utility PG&E Corp (PCG.N) after its stock plummeted over potential liability from maintenance problems linked to California wildfires. The funds supported big pay packages for executives at beauty products company Coty Inc (COTY.N) – including nearly $500,000 for their children’s tuition – as the company struggled to digest its acquisition of Procter & Gamble’s beauty business. And all three cast pivotal votes against the proposed reform of splitting the CEO and chairman roles at General Electric Co (GE.N) after a decade of poor performance.

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Those low costs are also the biggest selling point of all index funds over their actively managed competitors, which must charge more to pay for teams of managers who constantly research companies and cull low performers from their portfolios.Index funds’ business model and cost pressures don’t allow for much company research, said Ron Gilson, a professor at the law schools of Columbia University and Stanford University who follows the industry.

“There’s not much room for them to be investing in stewardship, particularly when real stewardship is expensive and you’re charging some customers close to a zero management fee,” Gilson said in an interview.