Proxy Voting Season 2024: Key Trends and Insights

During the 2024 proxy voting season, active shareholder engagement highlighted key issues such as executive compensation, AI oversight, and ESG (Environmental, Social, Governance) metrics. Neuberger Berman’s Global Sustainable Equity team participated in 41 shareholder meetings, reflecting a commitment to active engagement to enhance investment outcomes.

Notable themes included strong opposition to perceived misaligned or opaque executive pay, increasing demands for transparency in AI governance, particularly concerning effectiveness metrics, and rising shareholder calls for enhanced ESG disclosures alongside the emergence of “anti-ESG” proposals. There was a notable push for greater board diversity and independence, particularly regarding gender representation.

Moving forward, it's anticipated that ESG metrics will increasingly influence executive compensation, while debates over ESG and anti-ESG initiatives will intensify. Continuous scrutiny of technological risks, especially in AI, and ongoing discussions on board composition are expected, emphasizing the importance of effective engagement with management teams in navigating these evolving issues.