Corporate Governance & Executive Compensation Survey

Global law firm A&O Shearman released its first annual Corporate Governance & Executive Compensation Survey as a merged firm. The Survey highlights key trends and regulatory developments in corporate governance and executive compensation matters.

A key topic covered in the survey is the ongoing relevance of Environmental, Social, and Governance (E&S) issues, which have been central to public companies' engagements with institutional investors, advocacy groups, and other stakeholders. Some of the key takeaways from the survey include:

• E&S Proposals: E&S shareholder proposal submissions and passage rates have declined, but ongoing support for diversity, sustainability, and E&S-related initiatives remains strong. Many companies have rebranded E&S efforts under the “sustainability” label​

• Shareholder Engagement: Companies should maintain engagement with shareholders focused on E&S issues, as high-quality proposals could still gain support​

• Anti-ESG Legislation: Anti-ESG legislation has impacted E&S activities, but its passage rates have recently declined. Anti-ESG regulatory risks may increase, particularly concerning fossil fuels and DEI issues​

• Pass-Through Voting: New voting programs by asset managers like BlackRock and Vanguard allow investors to choose E&S policies. The impact of these programs on voting patterns remains uncertain