Executive Compensation in 2025

Executive compensation remains one of the most contested issues in corporate governance, with “say on pay” votes increasingly linked to board accountability and director elections. When shareholders reject pay plans, the impact often extends beyond remuneration, escalating into campaigns against directors and shaping broader governance debates. Recent trends show that directors face heightened risks - support below 80% on compensation can double the chance of losing seats in a proxy contest.

Across regions, the pressure takes different forms: U.K. companies wrestle with pay competitiveness versus investor restraint, Australia’s “two strikes” rule raises reputational stakes, and European peers in Germany and France continue to push standards higher. Against this backdrop, boards are under growing scrutiny not only for pay levels but also for contentious practices such as special equity awards, evergreen provisions, and performance adjustments that erode shareholder trust.

To navigate these challenges, companies increasingly rely on comprehensive intelligence that goes beyond peer benchmarking. Understanding investor voting behavior and engagement trends is critical to anticipating pressure points and refining communication strategies. Many boards now turn to external advisors and consultants after failed “say on pay” votes, underscoring the importance of data-driven insight.

Diligent Market Intelligence (DMI) distinguishes itself by combining shareholder engagement and proxy voting data with independent editorial analysis, providing issuers with both practical tools and strategic perspective.

This report extends DMI’s annual compensation analysis with editorial features drawn from recent coverage, offering issuers a timely resource for decision-making and a preview of the broader datasets available through the platform.