Shareholder proposal withdrawals drop to 10-year low (2024)
| Environmental, social, and corporate governance |
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The number of shareholder proposals withdrawn before voting fell to a 10-year low this past shareholder season. Shareholders on both sides of the ESG issue often use proposals to engage companies to consider their corporate policy preferences. Withdrawals can indicate that filers reached an agreement with the company directly ahead of a vote, making it one measure of corporate engagement:
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The proportion of ESG shareholder proposals withdrawn by proponents has fallen to a 10-year low, according to data from the Sustainable Investments Institute (Si2), with the US non-profit finding that 29 percent of those filed at US companies in 2024 were rescinded or not voted on, compared with 44 percent in 2020, 2021 and 2022. It comes as average support for ESG shareholder proposals has fallen for the third consecutive proxy season to 19 percent in 2024 from a record high of 33 percent in 2021. Shareholder proposals are often withdrawn because an agreement has been reached between the company and filer. High levels of support for resolutions in previous proxy years or at peers are often cited by filers as useful in pushing firms to make commitments.[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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