Regulatory and policy pressure shapes proxy season

Unprecedented mid-season rule and enforcement changes led to a slight drop in the number shareholder proposals filed in 2025, a larger drop in shareholder proposals appearing on company ballots, and a decrease in investor support for certain proposals.

One of the reasons for the drop is new SEC rules that make it more difficult for investors to file proposals through increased ownership thresholds and re-submission requirements. The rule changes also make it easier for companies to challenge proposals and exclude them from their meetings. Nearly half of all shareholder proposals were challenged by companies, representing a significant rise. Companies were also more successful in these challenges than in the recent past, leading to the exclusion of many proposals.

Additionally, investors took a cautious approach with a new Administration signaling their opposition to many social issues. Shareholder proposals on environmental and human rights issues saw a decline in investor support, particularly from large asset managers. Proxy advisory firms, which many investors rely on to provide guidance on proxy proposals, significantly decreased their support of shareholder proposals after feeling pressure from policymakers and the executive branch.

Despite new legal hurdles and executive pressure that make it more difficult for investors to use their rights to communicate with companies, Praxis will continue to reflect our values through our votes and oppose attempts to curtail shareholder rights.