The push for shareholder democracy should be accelerated

KEEPING SHAREHOLDERS satisfied used to be straightforward. If a firm could announce juicy profits, healthy cashflow and a perky dividend at the annual general meeting (AGM), applause was assured and few hard questions would be asked. But in recent years these meetings have shifted from routine talk of balance-sheets to loud battles over companies’ broader purpose. Where once it was enough for bosses to nod to some vague notion of “stakeholder capitalism”, now some investors demand that they present detailed strategies on everything from the environment to racial justice and even abortion. More, too, are highlighting the dissonance between companies’ stated values and their political donations. Shareholders at American firms face a record volume of proposals on environmental and social issues: 576 resolutions as of April 12th, up from 499 last year. In the coming weeks an unprecedented number will be put to a vote.