This proxy season looks to be defined by the contrast between competitiveness and governance, as several European markets are implementing legal changes intended to attract capital that may also threaten shareholder rights.
As many companies prepare to put their remuneration policies to a vote this year, European pay norms are in question based on concerns about the ability to retain executives and compete with U.S. peers. While investors have indicated a strong preference for performance-based schemes, the upcoming round of proxy voting — and how companies respond to the results — will provide a clearer picture of the landscape going forward.
The emphasis on competitiveness goes beyond remuneration, with several markets seeing legal changes intended to attract capital that may also threaten shareholder rights. France’s “Attractivity Law” opens the door to multi-class share structures, while the “closed door meeting” regime is expected to continue shutting investors out of Italian AGMs.
We expect a substantial increase in companies providing useful insight into how boards are overseeing artificial intelligence, covering both board oversight (including director skills and training) and the role of AI in companies‘ strategic plans and in their assessment of risk.
