Momentum around board-level oversight of cybersecurity and artificial intelligence remains strong. Several cybersecurity incidents at large- and mid-cap companies in recent years have highlighted the operational and reputational risks associated with cyber vulnerabilities.
Geopolitics will increasingly impact on the decisions that European companies and their investors will take this year, particularly in the Dutch semiconductor sector and among Nordic pharmaceutical and renewable energy companies with significant U.S. exposure.
Compensation
Increases to executive pay will likely be prevalent this upcoming season, in many cases based on competition for talent against U.S.-based public and private companies.
Succession planning is emerging as an area of increased interest, following several recent high-profile examples of the CEO moving into a non-executive chair role.
ESG & Activism
The European ESG landscape is shifting due to spillover from developments across the pond, with non-financial metrics becoming less prominent in incentive plans and several companies updating their internal diversity policies in connection with U.S. executive orders on DEI programmes and related federal guidance.
