Governance Proposals Dominate the 2026 Proxy Season
These are highlights from an article posted by ISS-Corporate analyzing the 2026 season.
Shareholder Proposal Volume Falls to a Five-Year Low
Against these backdrops, the overall volume of shareholder proposals submitted and advanced to a vote has declined to a five-year low.
While the overall volume of proposal submissions and those appearing on the final ballot declined, governance-related proposals recorded an increase in overall volume. This relative resilience highlights the continued prioritization of core shareholder rights and board accountability mechanisms among investors as well as changes in proponents’ tactics.
In contrast, environmental and social proposals extended their downward trajectory with further declines in both the number of proposals submitted and proposals voted, reflecting a more selective investor approach toward these topics. Anti-ESG proposals, which had been rapidly increasing in volume, saw a decline as well, though they continue to comprise a meaningful portion of overall proposal volume.
The shift in proposal activity likely reflects a combination of factors, including the evolving political and regulatory landscape, the mixed success many environmental and social proposals have achieved in recent years, and the impacts of recent SEC actions.
Changes to the SEC’s shareholder proposal framework and no-action process appear to have altered the calculus for proponents, potentially discouraging some submissions while incentivizing others to pursue a more focused strategy. As a result, some proponents appear to have reduced proposal activity altogether, while others have become more selective in targeting issues and companies, or have redirected their efforts toward governance-related topics that historically receive broader shareholder support and face fewer ideological headwinds.
Taken together, these developments suggest that rather than signaling a diminished interest in environmental and social issues, the decline in proposal volume may reflect a strategic recalibration by proponents seeking to maximize impact and improve the likelihood of gaining meaningful shareholder backing.
ISS-Corporate’s Approach to Proxy Season Insight
The 2026 proxy season highlights significant changes in shareholder proposal activity. While overall proposal volume declined, governance-focused proposals remained resilient and continued to receive the strongest investor support, highlighting sustained shareholder focus on board accountability and shareholder rights. Meanwhile, environmental and social proponents appear to be recalibrating their tactics, adopting a more targeted approach.
As the 2026 proxy season concludes, these trends offer important signals about evolving investor priorities and the issues most likely to shape shareholder engagement and voting decisions in the years ahead. ISS-Corporate’s Compensation & Governance Advisory team helps companies analyze shareholder proposal trends, benchmark governance practices against market expectations, assess potential areas of shareholder concern, and develop engagement and disclosure strategies that align with investor priorities. Through data-driven insights and practical governance guidance, we support boards and management teams in preparing for future proxy seasons and strengthening shareholder relationships in an increasingly dynamic governance landscape.