Institutional Engagement Highlights Q2, 2025

Institutional Engagement Q2

We’re pleased to share our newest analysis on Q2 shareholder engagement and activism trends. The corporate governance landscape is evolving rapidly, with investors demanding more accountability from boards and executives across markets. Our update captures the latest data and insights from Vanguard’s stewardship activity, activism outcomes, and regional regulatory developments.

One of the clearest signals this quarter is the shift toward a governance-first model. Rather than pushing narrowly on balance sheets or operational tactics, activists and investors alike are focusing on who sits in the boardroom. Changes in leadership and oversight are now seen as the most effective lever to unlock capital efficiency, risk management, and sustainable long-term performance.

Regional differences remain sharp. In the U.S., executive pay continues to dominate the agenda, while in Europe dissent is rising in the U.K., Germany, and France, where shareholder votes are challenging remuneration policies and reports at record levels. Meanwhile, Asia-Pacific markets are moving through structural reforms: Japan faces pressure on capital efficiency and AI risk oversight, while South Korea is strengthening shareholder rights through rules like the 3% cap and separate audit committee voting.

At the same time, regulation is reshaping expectations. Europe’s Omnibus Regulation and revised ESRS are streamlining ESG reporting requirements, Brazil is preparing to mandate sustainability disclosures by 2027, and the SEC’s tighter 13D/13G reporting rules in the U.S. are forcing asset managers to rethink how they engage without crossing activist thresholds. Together, these shifts are creating a more complex but more transparent governance environment for issuers worldwide.

For boards and management teams, the message is clear: investor expectations are converging globally, with executive remuneration, board accountability, and risk oversight as the defining pressure points. Our latest report provides the context and data you need to stay ahead as the next season of shareholder meetings approaches.

👉 Read the full update here - Download a copy