As investors and companies alike prepare for the upcoming Australian AGM season, this Minerva briefing looks at the voting trends and governance developments in the market.

The briefing examines voting results in the ASX100 from the previous five years and the first seven months of 2021 to identify key environmental, social and governance (ESG) issues that may inform voting decisions in the upcoming voting season. The analysis shows that eight companies that received a remuneration strike in 2020 and a further eight companies that received shareholder dissent of 20% but less than 25% ‘Against’ votes – shareholders will want to pay close attention to how the boards have responded to shareholder concerns. With three companies already suffering a remuneration report defeat in the first half of the year, executive pay looks set to be a key issue for shareholders this voting season with the business response to the coronavirus pandemic a key factor.

In addition, the analysis found that whilst the average level of female board representation surpasses the recommended 30% target, there are 31 companies that have not yet met the 30% target and only eight companies with a female executive. Whilst overall, improvements are being made on the gender balance of boards at ASX100-listed firms, there is much more work to be done on cultural diversity and Indigenous representation.