The number of resolutions requiring shareholder approval hit a record high in Europe in the first half of this year, driven by resolutions on board nominations and remuneration proposals, according to proxy advisory firm ISS.
Companies analyzed in 17 key European markets had an average of 14.5 resolutions each on their agenda in the first half of the year, ISS says. The period also had the highest-ever number of overall proposals submitted and the highest-ever number of companies with at least one shareholder proposal on the agenda.
Resolutions concerning remuneration and board nominations, driven by recent regulatory changes in Europe, account for more than 40 percent of all resolutions that reached a vote in the period, the advisory firm says. It adds that more than one in 10 resolutions regarding M&A, share plans and remuneration drew rejection levels in excess of 20 percent.
‘The growth in board nomination resolutions across Europe dovetails with the region’s sharper focus on board gender diversity,’ ISS says in a press release. ‘An analysis of ISS Governance QuickScore data finds steady growth in the percentage of women board members at UK, Norwegian, Dutch, Italian and other Europe-domiciled companies.’
The study shows the number of female directors on boards of FTSE 350 companies rose to 18.5 percent at the end of the first half, an increase of six percentage points from 2012. In France, women now constitute 26.3 percent of the boards on the SBF 250, above the current market quota but below the 40 percent quota set for 2017.
In Norway, women account for 37.9 percent of the boards of companies on the OBX Total Return Index, which is just below the market quota of 40 percent. And 26.1 percent of the board members of the AEX 25 in the Netherlands are female, just below the country’s gender diversity target of 30 percent.
In Italy, women now make up 14.2 percent of the boards on the FTSE Italia Mid Cap, which is more than double the 6.2 percent registered in 2012 but well below the 2015 quota of 33 percent.
