2018 Europe Proxy Season Review (Key Takeaways):

• Board Gender Diversity: Female representation on corporate boards continues to be on the rise in Europe. Almost all markets covered in this report registered increases in women serving on boards.
• ESG – Environmental and Social risks: Recent European initiatives encourage disclosure on environmental and social risks. The European Commission released its first legislative package under its Action Plan for Financing Sustainable Growth. In Switzerland, regulators are deliberating whether to establish human rights obligations for companies.
• Activism and protectionism: Shareholder activism by both European and US-based investors, continues to be seen in Europe. Regulatory changes are being proposed in both the Netherlands and Belgium to protect companies from “undesirable influences.” Belgium is yet another country to propose an introduction of loyalty shares with multiple voting rights to long-term shareholders.
• Compensation: Executive compensation remained in the spotlight this season, with several companies’ executive pay packages under greater shareholder scrutiny. In Germany, however, 2018 unusually marked a turnaround with an increase in shareholder support for pay-related voting items.