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2025 proxy season review: Four key takeaways


Investors’ governance focus evolves in a proxy season shaped by uncertainty and change.


In brief
  • Governance remained in focus amid changing company-investor dynamics, a reshaped shareholder proposal landscape and a rapidly evolving regulatory environment.
  • Companies garnered strong support for key votes, though board and committee chairs are more vulnerable to opposition and pay remains under scrutiny.
  • Changes in disclosures and practices signal deeper board engagement on technology matters and for some a potential repositioning of sustainability.

The 2025 proxy season was marked by a changing regulatory and policy landscape and shifting dynamics between companies and investors. New SEC guidance significantly impacted shareholder engagement and reduced the number of environmental and social‑focused shareholder proposals reaching proxy ballots.

States, including Delaware, Texas and Nevada, enacted statutory changes to attract company incorporation, while some policymakers and other stakeholders continued to put pressure on investors’ environmental, social and governance (ESG) practices and renewed efforts to reign in proxy advisors. Some investors grew more cautious about sharing their perspectives and revised their policies in ways that made their voting intentions less clear. These changes occurred amid a new political environment and ensuing economic and market uncertainty related to US trade policy.

 

In this dynamic business environment, companies overall secured strong support in key votes, including those related to director elections and say-on-pay. Still, investors demonstrated continued willingness to hold specific directors accountable and vote against management. Also, proxy disclosures — a powerful vehicle for telling the company’s governance story — highlighted technology as an area where companies continue to strengthen their oversight and disclosures.

 

To help directors navigate the evolving proxy landscape and changing stakeholder expectations, we examine four takeaways from the 2025 proxy season and suggest actions for boards to consider.

Key findings

2025 proxy season review

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Summary

The 2025 proxy season included regulatory shifts, investor caution, and evolving governance practices and communications. Companies maintained strong support on key votes, though board and committee leaders and executive pay drew scrutiny, while new SEC guidance and ongoing trends reshaped the shareholder proposal landscape. AI oversight and related director qualifications gained prominence, while DEI and sustainability disclosures shifted in a changing business context. Companies are urged to refine disclosures, monitor investor sentiment, and adapt engagement strategies to maintain trust and alignment in an environment of ongoing regulatory and policy changes and shifting company-investor dynamics.

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