Key facts
- Shareholder opposition to executive pay has decreased across major global stock markets this year.
- Contested pay reports in Europe fell by nearly 6 percentage points to 25.2%, the lowest level since at least 2018.
- In the United States, average support for 'Say on Pay' votes in the S&P 500 increased to 90.4%.
- In Japan, 8.7% of director compensation resolutions put forward by Nikkei 225 companies were contested in the 2026 AGM season, down from 12.4% in 2025.
- Companies like Smith & Nephew and K+S faced significant pushback, with over 40% of votes opposing their pay policies.
Shareholder opposition to executive compensation has eased globally in the past year, with notable declines in Europe, the United States, and Japan. This trend occurs even as CEO pay continues to outpace average worker wages, with record highs for S&P 500 companies excluding specific large pay plans. The shift also follows U.S. administration efforts to curb shareholder activism and changes in how some asset managers handle voting decisions.
In Europe, contested pay reports, where investors approve payouts for the prior year, fell by almost 6 percentage points to 25.2%, marking the lowest average level since at least 2018, according to data from Georgeson Advisory. This decrease is attributed to fewer 'oppose' recommendations from proxy advisors and increased engagement by companies with their investors. A contested vote is defined as receiving at least 10% shareholder opposition.
Opposition to future remuneration policies also saw a decline, falling to 36.6% from 37.9%, with the Netherlands experiencing a significant drop to 10.5% from 25%. However, Germany and Belgium were exceptions, with contested votes in Germany rising to 88.9% from 47.6%. Companies such as British medical technology firm Smith & Nephew and German potash company K+S faced substantial pushback, with over 40% of votes cast opposing their pay policies.
Investors in the UK and Europe appear more skeptical of proposed remuneration policies than of actual outcomes, indicating ongoing concern about the design of future pay structures, according to Sarah Wilson of Minerva Analytics. In the United States, the world's largest equity market, average support for 'Say on Pay' votes in the S&P 500 rose to 90.4% from 89.7%. The share of 'failed' votes, those with less than 50% support, slightly increased to 1.4% from 1.2%.
This modest increase in support for 'Say on Pay' in 2026 is likely due to stronger corporate performance and a generally favorable market environment, according to Rajeev Kumar, senior managing director at Georgeson. In Japan, during the 2026 AGM season, 11 out of 126 director compensation resolutions from Nikkei 225 companies were contested, representing approximately 8.7% of resolutions, a decrease from 16 instances or 12.4% in 2025. The total number of resolutions can vary annually.