This week we highlight two analyses, one by J.P. Morgan and the other by Ernst & Young, reviewing the 2017 proxy season. The reports address board diversity; gender equality; environmental, social and governance (ESG) issues; and the normalization of shareholder activism as high priorities and key trends for many investors and boards.
Political changes: Monitor the impact of major political changes, including the U.S. presidential and congressional elections and Brexit
The results of the U.S. presidential election are historic and unanticipated, and they will have significant economic, political, legal and social implications. As the nation prepares for the Trump administration, many uncertainties remain about how the incoming administration will govern. President-elect Trump has stated that he will pursue vast changes in diverse regulatory sectors, including international trade, health care, energy and the environment. These changes are likely to reshape the legal landscape in which companies must conduct their business, both in the United States and abroad.
Earlier today, the High Court of Justice ruled that the U.K. government does not have the constitutional capacity to trigger the U.K.'s withdrawal from the European Union without further primary legislation being passed. This decision is likely to delay, potentially significantly, the filing of the U.K.'s Article 50 notice with the European Council, further extending the uncertainty over the timing and the terms of the U.K.'s exit from the European Union (“EU”).