In the last few years in the U.S., proxy consultant influence has increased significantly. More directors have been held to account with higher votes against compensation committee members. Investors have become more courageous, voting against large salary increases, egregious recruitment packages and long-term incentive plans (LTIPs).
In 2020, we are expecting more developments such as these. Increasingly confident investors and proxy advisors present additional challenges to boards and companies, as their expectations are likely to be higher than the new codes and standards. We also predict significant discussion around sustainability and diversity, due in part to the Boardroom Accountability Project 3.0 in the U.S.
To help you prepare for 2020, the key themes we focus on in this globally-focused report are:
- Regulatory Impacts What new and updated regulations do you need to be aware of and how can you prepare?
- Executive Compensation What are the proxy advisor and investor trends to be aware of when developing your compensation policy?
- Environmental, Social and Governance Issues Why is sustainability continuing to grow in importance and what are the opportunities and risks?
- Board Accountability Where are shareholders and proxy firms likely to place pressure on boards?
- Shareholder Activism What can 2019 tell us about how likely a shareholder spring is in 2020, and how can you prevent activism at your own annual meeting?