Good morning.
The ESG proxy wars continued to intensify during this year’s proxy season, but proposals received declining support from shareholders, according to a new report from The Conference Board. A total of 836 proposals were filed in the first half of the year, up from 801 in the same period last year. And more than half of them—513—dealt with environmental and social issues, up from 466 during the same period last year. But average support for proposals plummeted to 23% this year from 31% last year. The trend was particularly pronounced among proposals dealing with environmental issues, where support dropped to 20% this year from 34% last year. Proposals from anti-ESG groups also spiked to 92 this year from 54 last year. But support for those was paltry: 5% this year, down from 9% last year.
Another sign of the times: Support for racial equity and civil rights audits dropped precipitously this year after surging the two previous years. In 2021, in the wake of the killing of George Floyd, there were nine such proposals, and they received an average of 32% support. In 2022, there were 31 proposals with 33% average support. But this year there were just 25 such proposals, and support slid to 16%.
And here’s one to keep an eye on: The number of proposals to separate the CEO and board chairman roles almost doubled, jumping to 86 this year from 47 last year. And support for those proposals rose modestly to 30% from 28% last year. A growing group of shareholders apparently believe that it is finally time to end the American tradition of giving both jobs to the same person.
The Conference Board report was produced in conjunction with ESGAUGE, Russell Reynolds, and the Rutgers Center for Corporate Law and Governance. You can see the full report here.
Also out this morning is Fortune’s quarterly investment guide, focusing entirely on real estate investing. With interest rates at their highest levels this century, our team shows you where the money-making opportunities can still be found. Subscribers can read it here.
Other news below.
Alan Murray
@alansmurray
alan.murray@fortune.com
