Time To Finish The Job On Proxy Advisory Oversight
Shareholder activism is on the rise and could accelerate under the Trump administration, which will bring new focus to the role of proxy advisory firms.
Shareholder activism is on the rise and could accelerate under the Trump administration, which will bring new focus to the role of proxy advisory firms.
With more companies like McDonald’s and Walmart ending DEI initiatives, corporate boards can count on continuing pressure from conservative groups to abandon diversity programs. Getting shareholders’ input on the issue offers corporate boards tremendous support.
Directors anticipate a slate of shareholder proposals on ESG, time-based incentive compensation, supermajority voting and director qualifications as Trump 2.0 policies take hold.
Though much maligned, these two-tiered structures, which offer superior voting to some shareholders, endow companies with a host of advantages, including better shareholder return.
No matter which side of the DEI debate directors are on, corporate boards will likely pay close attention to what happens with the vote on this anti-DEI proposal.
Despite recent backlash, many publicly traded companies continue to maintain and promote DEI initiatives, while some have changed their terminology.