IR Monitor – 12 November 2025

In this week’s newsletter:

• UK continues to lead Europe in shareholder activism with 44% year-on-year surge
• Elon Musk’s $1trn pay deal is a troubling display of corporate capture
• The Sunday Times:  Tories promise ‘to take chainsaw’ to green reporting rules
• UK watchdog to give green light to share payouts for non-executives: the change should boost the ability of UK-listed companies to attract talent from abroad, suggests FT
• The IR Society held a webinar on equity research – views from Investor Relations and the buy side. Your FTI correspondent Riah Somaia  attended
• And finally … mentions of AI were found across 617 earnings calls in Q3 this year – a 1,241% increase over Q3 last year – Axios reports

This week’s news

UK continues to lead Europe in shareholder activism

The UK has consolidated its position as Europe’s hotspot for shareholder activism, with a 44% surge in targeted companies over the past year, according to Diligent Market Intelligence’s Corporate Governance in Europe 2025 report. From September 2024 to August 2025, 52 UK firms faced activist campaigns, reflecting both strong domestic engagement and renewed interest from US investors seeking opportunities abroad. The study, produced with White & Case, also shows activism spreading across Europe in distinct ways: Germany has become the most contested market, with activists winning six board seats this year; Italy’s slate voting structure continues to facilitate quiet board changes; and more campaigns have gone public in France as behind-the-scenes efforts stall. Saba Capital and Amber Capital were named as Europe’s most influential activists.

Elon Musk’s $1trn pay deal is a troubling display of corporate capture

More than three-quarters of investors backed Elon Musk’s record-breaking pay package: a deal that could hand Musk up to $1 trillion in Tesla stock if he meets a decade-long set of ambitious goals, including lifting the company’s market value to $8.5 trillion and delivering on his visions for robotaxis and humanoid robots. The Economist outlines that despite opposition from some institutional investors and proxy advisers – who called the award excessive and poorly structured – Musk’s win was all but guaranteed, buoyed by his loyal retail investor base and his own sizable stake. Critics argue the payout underscores weak governance at Tesla, now incorporated in Texas, where rules allowed Musk to vote for his own compensation. As Tesla faces slowing growth, shrinking margins and rising competition, questions remain over whether even a trillion-dollar incentive can refocus its mercurial CEO.

Tories promise ‘to take chainsaw’ to green reporting rules

The Conservative Party has vowed to drastically roll back mandatory climate and ESG reporting in a bid to make the UK more attractive for company listings. Shadow business and trade secretary Andrew Griffith said a future Tory government would “take a chainsaw” to what he called excessive red tape, including requirements for firms to disclose carbon footprints and other sustainability metrics. Regulators “with a tendency to go woke” would also face tighter controls, he added. The party argues that ESG rules impose costly and time-consuming burdens on businesses – with average sustainability reports running over 80 pages and costing hundreds of millions annually. Scrapping these obligations would free companies from activist-driven reporting, reduce de-banking risks, and strengthen the UK’s competitiveness against markets with lighter regulation. Critics warn it could weaken corporate accountability on climate commitments.

UK watchdog to give green light to share payouts for non-executives

According to the Financial Times, the UK’s Financial Reporting Council plans to update its Corporate Governance Code to encourage London-listed companies to pay non-executive directors with shares, narrowing a gap with US practices. FRC Chief Executive Richard Moriarty said companies can adopt “varied approaches” to remuneration as long as independence is maintained and decisions are transparent. Supporters say the change could help attract international talent and address a widening transatlantic pay gap, with EY reporting that UK non-executive directors earn 26% less than their North American peers. The move also responds to concerns that restrictive rules around share-based pay may discourage companies from listing in London, contributing to the city’s declining appeal. Experts add that allowing share incentives better aligns non-executives with shareholder interests and could improve boardroom quality.

Equity research – views from Investor Relations and the buy side.

Sell-side research has become broader and less experienced, according to an IR Society panel, forcing IR teams to take a more active role in shaping engagement and maintaining message consistency, according to a panel of IR professionals. With analysts now covering more stocks and producing shorter, fact-based reports, proactive outreach has become essential to keeping the company’s narrative front of mind. As the sell-side’s role evolves, IR teams are increasingly responsible for aligning forecasts with internal guidance, clarifying discrepancies, and ensuring consensus data remains accurate and up to date. At the same time, AI tools are reducing the buy-side’s reliance on traditional research, though experienced sector specialists continue to add valuable context. Panellists agreed that clear, consistent communication remains the cornerstone of effective IR.

And finally … mentions of AI were found across 617 earnings calls in Q3 2025

An Artificial Intelligence bubble? Axios reports on research from AlphaSense which found that mentions of AI-related terms such as “agentic AI,” “AI workforce,” and “digital labour” have surged since Q3 2024, with the phrases appearing across 617 earnings calls last quarter, a 1,241% increase from a year earlier. OpenAI has emerged as the standout name, appearing 31 times in major earnings transcripts. The attention reflects OpenAI’s growing influence over both the AI ecosystem and the broader market. Microsoft mentioned OpenAI 19 times on its recent earnings call, despite reporting a $4 billion loss tied to its share of OpenAI’s losses. OpenAI itself is rumoured to be preparing for a public debut, potentially at a $1 trillion valuation.