In his latest column for Reuters’ Practical Law, Senior M&A Partner Frank Aquila examines developments disrupting the traditional proxy advisor model and reshaping investor voting dynamics. He discusses institutional investors’ move toward more customized voting approaches, noting that these changes are reducing alignment with benchmark policies and making voting outcomes less predictable.
Frank also outlines practical steps for boards, including deepening direct shareholder engagement and tailoring governance decisions to investor-specific perspectives and voting frameworks.
Given the current landscape, “a careful process, informed engagement, and disciplined planning are not optional refinements for the Company,” he writes. “Companies should prioritize articulated investor priorities, rather than assumed benchmark alignment, when making governance and shareholder engagement decisions.”
Read: “The Changing Proxy Advisor Landscape”