Investment Institute

Sustainability

AGM season 2024: Back to governance basics?

11 September 2024 (7 min read)

Written by

Héloïse Courault

Corporate Governance and Stewardship Analyst, AXA IM
Alexandre Prost

Senior Corporate Governance and Stewardship Analyst AXA IM Core
Constance Caillet

Corporate Governance and Stewardship Analyst

KEY POINTS

This year’s annual general meeting season has endured a notable deterioration in key shareholder rights

The period highlights the role of corporate governance in promoting sustainable practices aligned with the Paris Agreement and EU Green Deal

AXA IM remains steadfast in its commitment to advocate for good governance, which we see as the foundation for credible and successful implementation of sustainability strategies

Corporate governance standards, alongside basic shareholder rights - including the right to vote - have been under attack in 2024, and competition has been at the heart of this worrying development.

Many have criticised the lack of competitiveness of certain markets - chiefly Europe and the UK; rigid regulations, problematic stewardship frameworks, unattractive remuneration compared to private equity and/or US markets have all been cited as the primary drivers.

Robust governance is vital for investor protection, but it should never be at its expense - we should always be mindful of previous governance crises which destroyed massive economic value.

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Disclaimer

This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities.

Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.

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