Proxy Season 2025 Highlights: What Shareholders Are Demanding Now

As the 2025 proxy season wraps up for Canada’s largest public companies, shareholder proposals have once again shown their ability to spark meaningful conversations, even when they don’t pass. From AI governance to executive pay transparency, this year’s trends reflect shifting priorities and a changing activist landscape.

Fewer Proposals, Sharper Focus

The volume of shareholder proposals submitted to the TSX 60 companies has dropped sharply, down nearly 30% compared to 2024 as of June 27, 2025. Yet the proposals that did make it onto ballots were more targeted and resolute. Traditional players like Mouvement d’éducation et de défense des actionnaires (MÉDAC), The Accountability Board, InvestNow, and the Shareholder Association for Research and Education dominated submissions, while activity from one-time activists dwindled.

Interestingly, fewer proposals were withdrawn before votes this year. Proportionally, withdrawals were about half of what they were in 2024, suggesting that shareholders are increasingly determined to bring their concerns directly to annual general meetings (AGMs).

Read More: The ESG Crossfire: Shareholder Proposals Stir Controversy This May

Top Trends Defining Proxy Season 2025

Artificial Intelligence: Turning Talk into Action

For the first time, AI governance emerged as a critical theme in shareholder proposals. MÉDAC headlined efforts by submitting resolutions urging companies, including Canada’s largest banks, to adopt the Voluntary Code of Conduct on the Responsible Development and Management of Advanced Generative AI Systems.

Although support for AI-related proposals ranged from 2% to 17%, their appearance signals that shareholders are beginning to view AI risks and oversight as board-level priorities.

ESG Proposals: Momentum Slows

After years of strong activity, environmental, social, and governance (ESG) proposals saw a notable decline in 2025. The slowdown coincides with the Canadian Securities Administrators putting climate-related and diversity disclosure rules on hold, possibly reflecting broader “ESG fatigue.”

Nevertheless, climate risk management remained a consistent theme, with shareholders pressing boards for clearer strategies to address climate challenges.

Anti-ESG Activism: Few and Far Between

Unlike in the U.S., where anti-ESG activism has gained traction, Canada’s 2025 proxy season featured only a handful of such proposals. These were mainly aimed at banks’ participation in the Net-Zero Banking Alliance and similar initiatives. Most were withdrawn after some banks independently exited these climate alliances.

Diversity Proposals: A Missing Focus

Calls for racial and gender diversity initiatives were almost absent this season. The only standout was a proposal urging a third-party racial equity audit to evaluate a company’s potential negative impacts on communities of colour.

Executive Compensation: Spotlight on Pay Gaps

Shareholders are also increasingly scrutinizing executive pay. Proposals in 2025 focused on demanding more detailed disclosures about CEO-to-median-employee pay ratios and internal pay metrics used to determine executive compensation. Although support levels hovered between 7% and 12%, the trend underscores growing pressure for greater transparency in corporate pay practices.

Also Read: ESG Rating and Shareholder Activism: Driving Corporate Responsibility

More Than Just Votes

Even when proposals fail to secure majority support, their influence often extends beyond vote tallies. By raising critical issues, like AI oversight or fair pay, shareholders are planting seeds for future policy shifts and keeping boards accountable to evolving stakeholder expectations.

As companies prepare for the 2026 proxy season, this year’s themes suggest that while the volume of proposals may fluctuate, their ability to shape corporate governance agendas remains strong.

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Source: Norton Rose Fulbright