The 2026 proxy season is shaping up to be one of the most dynamic in recent memory.
From evolving stewardship models and shareholder proposal rules to rising activism and new SEC guidance, companies are facing a more complex governance environment that calls for thoughtful planning, not just procedural readiness. For investor relations officers and CFOs, this moment presents both challenges and opportunities as they seek to engage shareholders effectively in an increasingly fragmented and fast-moving landscape.
New Voting Models Are Reshaping the Landscape
One of the most significant developments comes from the proxy advisory world. Glass Lewis recently announced it will retire its benchmark policy in 2027 and offer multiple voting “perspectives” aligned with different investor philosophies. ISS is taking a similar path, offering more tailored research without vote recommendations.
While these changes give investors more flexibility, they also introduce uncertainty for issuers. Voting outcomes may vary more widely than in the past, even among institutions that once appeared predictable.
The Big Three Are No Longer One Voice
BlackRock, Vanguard, and State Street, which often are referred to as “The Big Three,” are adapting in different ways. Each is expanding client-directed voting programs and segmenting their stewardship functions into distinct teams. These internal shifts can mean that a single asset manager may now represent multiple voting approaches, depending on the structure of its products and internal processes.
For companies, this means more engagement points to track, and more preparation to meet with the right teams with the right messages.
Activism Is Evolving
Activist campaigns are also taking new forms. “Just vote no” or withhold campaigns, where activists push for board change without nominating their own candidates, are becoming more common. These efforts are often lower-cost but can still generate significant momentum, especially at small- and mid-cap companies.
Even when they don’t succeed outright, they can open the door to further scrutiny and pressure down the line.
Engagement Is More Strategic Than Ever
Across all of these changes, one thing is clear: Engagement is no longer a box to check before the annual meeting. Boards and management teams are thinking more strategically about how they communicate with shareholders, especially as the ability to forecast vote outcomes becomes less certain.
Companies that invest in consistent, tailored engagement backed by a strong understanding of their investor base and governance trends are better positioned to build trust and reduce risk.
Looking Ahead
As we head toward 2026, it’s a natural time to assess your company’s governance engagement program. Are you confident in your approach to stewardship teams? Are you tracking the right policy changes? Are your board and IR teams aligned on messaging?
At Sharon Merrill Advisors, we work with companies to:
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Understand the voting behavior and policies of their top shareholders
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Prepare board members and management for more complex engagements
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Coordinate messaging that reflects evolving investor expectations
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Stay ahead of trends in activism, disclosure, and proxy advisory practices
