Investment Institute
Sustainability

AGM season 2024: Back to governance basics?

KEY POINTS
This year’s annual general meeting season has endured a notable deterioration in key shareholder rights
The period highlights the role of corporate governance in promoting sustainable practices aligned with the Paris Agreement and EU Green Deal
AXA IM remains steadfast in its commitment to advocate for good governance, which we see as the foundation for credible and successful implementation of sustainability strategies

Corporate governance standards, alongside basic shareholder rights - including the right to vote - have been under attack in 2024, and competition has been at the heart of this worrying development.

Many have criticised the lack of competitiveness of certain markets - chiefly Europe and the UK; rigid regulations, problematic stewardship frameworks, unattractive remuneration compared to private equity and/or US markets have all been cited as the primary drivers.

Robust governance is vital for investor protection, but it should never be at its expense - we should always be mindful of previous governance crises which destroyed massive economic value. 

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