The 2025 AGM season has brought major shifts in shareholder expectations, executive pay practices, and the broader governance landscape. EQ Proxy’s latest update distils data from over 80 meetings, proxy advisor recommendations, and institutional voting trends into clear takeaways that boards - and especially NEDs - cannot afford to overlook.
As stewards of governance, NEDs play a pivotal role in ensuring companies respond effectively to investor sentiment and evolving market standards. This briefing highlights:
- Remuneration developments: from the growing use of restricted stock units and revised dilution limits, to the impact of scrapping the banker’s bonus cap and the influence of US pay practices.
- Rising shareholder activism: with proposals surging more than tenfold year-on-year, boards must be prepared for heightened scrutiny and more assertive investors.
- The engagement imperative: successful outcomes increasingly hinge on early, constructive dialogue with shareholders, and understanding the nuances of voting discretion within institutions.
- Resolutions under pressure: a sharp rise in votes falling below 80% support underscores the need for transparent board decision-making and resilient investor relations strategies.
- Climate and stewardship trends: a drop in Say on Climate resolutions and the debate over the new UK Stewardship Code signal shifting investor approaches to ESG oversight.
- Regulatory and market changes: from digital reporting initiatives to the creation of PISCES, the landscape in which NEDs operate is rapidly evolving.
Learn more:
Stay ahead of the issues shaping boardrooms this year. Explore EQ Proxy’s Governance Update: Key Themes from the 2025 AGM Season for the insights NEDs need to anticipate risks, strengthen board effectiveness, and lead with confidence. Read the full update here.