Shareholder opposition to executive pay eases globally

"The result is a more fragmented environment in which voting outcomes can be less predictable, even when overall dissent levels remain relatively low," said Cas Sydorowitz, head of Georgeson Advisory.

Contested pay reports in Europe, where investors sign off on payouts for the prior year, fell almost 6 percentage points year-on-year to 25.2%, data from shareholder advisory firm Georgeson Advisory showed — the lowest average level since at least 2018.

As well as fewer 'oppose' recommendations from proxy advisors, which help institutional investors decide how to vote, companies were increasingly engaging their investors to head off any discontent at the annual general meeting, Georgeson said.

A contested vote is defined as one that receives at least 10% shareholder opposition, Georgeson said.

Opposition to future remuneration policies also declined, albeit to a lesser extent, to 36.6% from 37.9%, the data showed, led by the Netherlands where opposition fell to 10.5% from 25%. Belgium and Germany were exceptions, with contested votes in Germany rising to 88.9% from 47.6%.