Anti-DEI Proposals Skyrocket – With Almost No Support

Anti-DEI proposals actually overtook pro-DEI proposals among early filers this year, according to a new Fenwick analysis, and have already surpassed last year’s total. However, their support among investors continues to be extremely low, begging the question of why they are used in the first place. 

By the numbers: Pro-DEI proposals have fallen in number compared to last year while anti-DEI proposals have blown up. However, the pro-DEI proposals still have higher levels of investor support, including several new ones this year. 

Pro-DEI Proposals: So far there have been about 25 proposals submitted, with a handful going to a vote. Importantly, every pro-DEI proposal so far has specifically addressed the company’s pull-back from DEI initiatives.  

Anti-DEI Proposals: These have skyrocketed to 54 so far, with the vast majority in the general category of reports on “risks of discrimination on the basis of political/religious views” (average support typically in the 1-2% range). 

Bottom line: It seems clear that anti-DEI proposals are less intended to influence shareholder support than they are a messaging tactic to pressure companies into making changes.  

A new DragonGC report provides a fascinating look into the Fortune 100’s experience over the past few years, including responses to shareholder proposals and changes made, and is worth a look. Their conclusion: “Companies are not jettisoning DEI but are recalibrating how it is presented in filings.”