ESG Newsletters & Alerts

Proxy Voting Weekly Digest - Week Ended May 24, 2024

June 04, 2024

How do the voting results of the 2024 proxy season compare to those of the 2023 season? It depends on how you look at it.

Based on shareholder proposals that received majority support in the Russell 3000, the 2024 proxy season is significantly ahead with 35 proposals passing versus 21 proposals during the same time last year. However, this increase can be largely attributed to the success of governance-related proposals, with 32 gaining majority support. Notably, the elimination of the supermajority vote requirement is the most successful topic of the season, with 27 proposals passing. By contrast, only three E&S proposals have passed thus far in 2024 (versus 5 during the same time in 2023).

In terms of average support, the 2024 and 2023 proxy seasons are neck and neck with 24% average support. While governance proposals continue to receive higher levels of support (41% thus far in 2024 versus 30% during the same time in 2023), support levels for E&S proposals remain slightly below those of 2023 (17% in 2024 versus 19% in 2023). However, when excluding proposals submitted by conservative groups (typically referred to as “anti-ESG” proposals) for which support has been particularly low this season, support for E&S proposals averages 22% in both 2024 and 2023.