Courteney Keatinge is the Vice President of ESG Research and Dimitri Zagoroff is a Senior Editor at Glass, Lewis & Co. This post is based on their Glass Lewis memorandum.
Key Takeaways
In the absence of SEC no-action relief, companies are moving to exclude far fewer shareholder proposals — which has largely offset the reported decline in the number of proposals
The proponent’s identity matters: companies are seeking to omit more proposals submitted by individual shareholders, while allowing proposals from institutional and “anti-ESG” proponents onto the ballot.
The SEC’s current “no objection” approach creates a more complex landscape for engagement and negotiation, while leaving boards (and the SEC itself) exposed to litigation.
The number of shareholder proposals covering social topics continues to decline, while the proportion focusing on governance continues to surge.
How has the SEC’s new approach to no-action requests [1] impacted the shareholder proposal landscape? It’s a question that Glass Lewis is monitoring throughout this year’s U.S. proxy season.
Four months into the year, and with proxy season at its peak, some notable trends are emerging. In the second instalment of an ongoing series on shareholder proposals and company exclusions, we share what we’ve observed at meetings held through April 30.
