An FTI Consulting Report: 2022 AGM Season Preview

Following a 2020 year marked by the Covid-19 pandemic and national lockdowns, extreme weather catastrophes and the rise of social justice movements, the 2021 proxy season was aligned with wider trends as it was part of the shift in perceptions about the intersection between business and society. Companies, globally, were held accountable by their shareholders on a broad scope of topics from climate change, to diversity, equity and inclusion  (DEI), to the management of stakeholder relationships when evaluating executive remuneration.

Against the backdrop of a rising focus on E&S matters, as companies prepare for the 2022 AGM season, and finalise reporting and engagement strategies, we look at the most recent guideline updates for the leading proxy advisors, Glass Lewis and ISS. From the investor perspective, we analyse the key topics that were part of BlackRock and State Street’s letters to the CEOs of their investee companies, as well as proxy voting guideline updates for the world’s three largest asset managers: BlackRock, State Street and Vanguard. The alignment in expectations across these different players this year is unprecedented, reflecting the feeling that significant action is needed from companies, investors, and regulators to address the most pressing E&S issues affecting our society.