Activist shareholders achieved a higher rate of success on public policy resolutions during this year’s proxy season, driven by changes from the Securities and Exchange Commission and investor pressure on companies to tackle environmental, social and governance issues.
Environmental and social resolutions edged out governance for the first time as categories with the most majority-supported proposals, according to Gibson, Dunn & Crutcher LLP.
Resolutions focused on climate change and diversity made up 45 percent of proposals that received majority support, a group of nine attorneys from Gibson Dunn’s securities regulation and corporate governance practice said in a July 11 client note. Meanwhile, governance made up 38 percent of proposals with majority support.