Is Shareholder Democracy Under Threat?
For the past two years, and since Donald Trump’s return to power, the annual general meeting season has been marked by renewed concern among responsible investors. The number of shareholder resolutions is collapsing in the United States, while virtual general meetings are becoming increasingly widespread in Europe. Can minority voices still make themselves heard? The reality is mixed. 11 June 2026
In Séverine Leboucher’s latest article for Option Finance, “Shareholder Meetings: Is Shareholder Democracy Under Threat?”, she examines whether investors are finding it increasingly difficult to make their voices heard at annual general meetings.
In the United States, changes to the regulatory and political environment have coincided with a sharp decline in shareholder proposals. SquareWell Partners identified 482 proposals at S&P 500 companies during the 2024 proxy season, compared with just 202 by the end of May this year. Social and human-capital proposals fell from 135 two years ago to 45, while environmental proposals declined from 74 to 33.
The article also highlights how investors are becoming more cautious in their engagement with US companies. Michael Herskovich of BNP Paribas Asset Management noted that some investors are avoiding explaining the reasons behind votes against management proposals.
Commenting on the impact, SquareWell Partners’ Louis Barbier said: “The rules do not prevent shareholders from voting as they wish, but because they can no longer clearly express their concerns, companies are less able to respond to them.” Barbier also discussed efforts by large passive managers to give fund clients greater control over voting decisions through predefined voting policies. While operationally complex, he described these initiatives as one way of strengthening shareholder democracy.
In Europe, shareholder proposals have remained relatively stable, with SquareWell recording 92 proposals at STOXX Europe 600 companies this season, compared with 98 last year. However, concerns are growing around virtual-only shareholder meetings, inconsistent voting procedures and potential changes to shareholder rights.
The article features further commentary from Allianz Global Investors, Fidelity International, Ethos Foundation, Carmignac and Sycomore Asset Management, highlighting the continuing importance of transparent engagement, meaningful voting rights and direct access to company boards.
The full article could be access here, in French and subscription required.
