You’ve Received a Shareholder Proposal. Now What?

Shareholders submitted a record number of proposals to companies in 2023, building on the previous high-water market set in 2022. While shareholder support for ESG proposals dropped considerably during 2023’s proxy season, and shareholders were more likely to support say-on-pay proposals, the overall trend of more and more proposals shows no sign of abating. Response to a shareholder proposal can vary greatly depending on a company’s specific shareholder mix, engagement track record and recent performance, but preparation and planning are key for every company.

H/Advisors Abernathy’s shareholder activism, proxy insights and ESG advisory teams have brought together this set of Recommendations for Addressing Shareholder Proposals, to help companies and boards navigate the current public activism environment.