What's shaping corporate governance in 2025?

Welcome to ‘The Future of Corporate Governance’ newsletter!

Corporate governance is at another crossroads. As companies navigate an era of uncertainty, the need for adaptive governance strategies has never been greater.

Following on from the success of our monthly In Focus newsletter which came to an end in January, ECGI is introducing 'The Future of Corporate Governance', a new monthly newsletter, exploring the most pressing issues and trends relating to scholarship and practice in corporate governance. As before, it will draw on cutting-edge research from the ECGI Working Paper Series and global insights from leading academics, investors, and corporate leaders.

How will corporate governance evolve in these uncertain times? To help us find our bearings, each month we will spotlight a key governance challenge, examining regional differences, policy developments, and corporate responses. We aim to raise important questions and foster dialogue rather than provide definitive answers. This newsletter will ideally serve as an open forum for sharing ideas, concerns, and aspirations for the future.
 
What’s Shaping Corporate Governance in 2025?

Corporate governance is being redefined by several converging forces, including:

📌 AI, Cybersecurity & Digital Transition: Boards must now oversee AI-driven decision-making, cyber risk management, and evolving investor technologies like pass-through voting. Are they prepared?

📌 Geopolitics & FDI: No legal or economic system exists in isolation. As trade wars and national security concerns rise, how will companies adapt to investment restrictions? How will they compete with state-owned enterprises? Is it time for diplomatic expertise on boards?

📌 ESG Crossroads: Diverging regulatory approaches between the EU and U.S. are driving both advancement and backlash. Is ESG becoming a political battleground?

📌 Public vs. Private Markets: More companies are opting to stay private, backed by sovereign wealth funds or private equity investors. What does this mean for transparency and accountability? Have regulatory requirements made public listings unattractive to companies?

📌 Shareholder Activism & Investor Stewardship: From common ownership to activist hedge funds, who really controls corporate strategy? What are the potential impacts of new Delaware ‘reforms’ on shareholder rights in the U.S. and beyond?

📌 Dual Class Shares & Multiple Voting: A classic theme that is resurfacing in the context of powerful private markets, defensive strategies, and competition. In the EU and Asia, a relaxation of regulations is seeking to accommodate stock exchanges and attract company listings from overseas. Is it a race to the top or to the bottom?

📌 The Changing Nature of Cross-Border M&A: Are national security concerns complicating international mergers and acquisitions? How will antitrust enforcement affect corporate consolidation?

These themes and others will be explored in upcoming editions, supported by ECGI research and expert commentary.

As always, please get in touch with your views, priorities and predictions for the future of corporate governance. I look forward to embarking on this journey with you.
 
A presto,

~ Riccardo