Executive pay will be the top engagement issue for investors around the world in 2025, according to a poll of international fund managers.

The survey, by Georgeson, an advisory firm, reveals that 83% of investors say executive pay is their number one issue, followed by shareholder rights at 79%, the climate transition at 75% and capital management at 71%.

The results come at a time when the change in White House leadership has seen the US government turn against sustainability—including climate and diversity policies—and senior figures in the City believe they have changed attitudes in favour of higher levels of executive pay.

The Georgeson report says that pay is the main topic during annual meetings globally. Investors will highlight the importance of “aligning” pay with long-term performance “especially in an economic environment shaped by some uncertainty”.

The report adds: “Investors seek to ensure that executive pay is fair, sustainable and aligned with long-term value creation.

“Companies will likely need to adopt a more nuanced approach to remuneration design and disclosure.”

Remuneration mutation

Last year, the Investment Association, a trade body representing investment managers, rewrote its principles for remuneration in the UK, a move which some see as reconfiguring the executive pay debate.

Last week, Julia Hoggett, chief executive of the London Stock Exchange, who has led a campaign for higher pay, told a conference for the Capital Markets Industry Taskforce (CMIT) , a lobby group, that the “message” has changed in the UK due to the Investment Association’s guidance.

“I believe this is now providing a significant number of company remuneration committee chairs—particularly those of globally consequential companies and those in globally competitive industries—with the confidence to act in the way that they consider is in the best interests of the long term success of their companies through, where merited, being able to significantly increase pay packages for top talent,” said Hoggett.

Shareholders’ rights also cropped up among investors’ priorities at a time when the UK has been cutting back.

Last year, reforms were passed that softened rules on dual-class shares and removed the need for shareholder approval of significant transactions. The changes were energetically opposed by the International Corporate Governance Network (ICGN) because, it said, they would “entrench” power in the hands of a small number of investors.

‘Safeguarding shareholder interests’

Georgeson says reforms have been taking place in other jurisdictions “prompting investors to focus on safeguarding shareholder interests”.

The report adds: “These developments highlight an evolving landscape of governance whereby investors increasingly expect greater transparency and fairness in corporate decision-making processes.”

Despite pushback from the US, climate change remains a key issue for investors worldwide, according to Georgeson.

The report says investors increasingly want “more than just aspirational commitments to climate action.

“They seek robust, transparent plans for achieving net-zero goals, including clear milestones, capital allocation and alignment with science-based targets.” Boards, the report adds, will need to “demonstrate actionable progress towards decarbonisation”.