Below are key takeaways from ISS’ recently released 2024 Proxy Review: France. The full report is available to institutional subscribers by logging into ProxyExchange then selecting the Knowledge Center and its Library tab and to corporate subscribers by logging into Compass then selecting Governance and the Governance Library or Governance Exchange tab.
- Executive remuneration: Remuneration continues to be a high-profile topic at general meetings in France as say-on-pay proposals remain under scrutiny from investors and other stakeholders. Shareholder dissent has been relatively steady since last year.
- Climate: In 2023, members of the French Parliament decided not to impose consultative shareholder vote requirements on climate and sustainability strategy, and on the annual report on climate strategy implementation. Nevertheless, during 2024 some French companies included a non-voting item on ballot discussing their climate strategies with shareholders.
- Auditors responsible for certifying sustainability reporting: Following the transposition of the CSRD into national law with effect at the start of 2024, large companies submitted votes to appoint auditors in charge of certifying their sustainability disclosures.
- Shareholder proposals: Due to an unclear legal framework, the French market has historically remained less affected by shareholder proposals compared to other European markets. Still, some companies were unexpectedly targeted with shareholder proposal filings during the 2024 proxy season.
- Regulatory changes: The enactment of the Holroyd Act marked the culmination of parliamentary discussions aimed at maintaining the attractiveness of the French market.
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By: Julien Abriola, Fabien Duclos, Paul Guiziou, Cyril Levavasseur, Adrien Lienhart, Juliette Norval-Freedman
