David A. Bell, Partner and Co-Chair of Corporate Governance, and Wendy Grasso, Corporate Governance Counsel at Fenwick & West LLP, analyze the shifting landscape of shareholder activism concerning Diversity, Equity, and Inclusion (DEI) initiatives, revealing a significant downturn in pro-DEI proposals and a surge in anti-DEI resolutions during the 2026 proxy season. The data, compiled as of May 31, 2026, by Proxy Analytics, indicates a continuation and acceleration of trends observed in the previous year, with anti-DEI proposals now dominating the discourse, while shareholder support for initiatives promoting DEI has substantially receded. This shift aligns with findings that proponents with more conservative leanings are increasingly submitting a larger share of proposals. For the purposes of this analysis, proxy seasons are defined as the period from July 1 through June 30, with "pro-DEI proposals" advocating for DEI initiatives and "anti-DEI proposals" criticizing them.
Pro-DEI Proposals Face Significant Headwinds
The 2026 proxy season has marked a dramatic cooling of investor enthusiasm for several key pro-DEI shareholder proposals that were once mainstays of activism. The data reveals a striking decline in the volume and, crucially, the support received by these resolutions, suggesting a potential recalibration of investor priorities or a shift in perceived effectiveness.
Board Diversity Proposals Plummet in Volume and Support
Proposals requesting companies to adopt policies or report on board diversity efforts, aimed at increasing or facilitating diversity, have experienced a precipitous drop. Only a single board diversity proposal was submitted during the 2026 proxy season, garnering a mere 2.0% approval at the shareholder vote. This represents a stark contrast to previous years, with submissions falling from 15 in 2022 to six in 2023, and further to just one proposal annually in 2024, 2025, and 2026.
The decline in shareholder support is equally pronounced. Average support for board diversity proposals has fallen significantly from 26.5% in 2024 and 18.9% in 2023. This downward trajectory, while potentially influenced by a limited sample size in recent years, may signal a waning investor appetite for strict board diversity mandates. This trend could be influenced by the evolving stances of major asset managers, often referred to as the "Big Three," who have reportedly moved away from promoting rigid board diversity targets. While caution is warranted due to the small number of votes, the data strongly suggests a diminishing return on investment for this particular shareholder advocacy strategy.
Racial Equity Audits See Sharp Decline
Resolutions calling for companies to commission independent, third-party racial equity audits have also experienced a significant downturn. These proposals typically seek an assessment of the racial impacts and discrimination risks associated with a company’s policies and practices. For the 2026 proxy season, no such proposals have been submitted to date. This continues a sharp decline from a high of 40 submissions in 2022, down to 29 in 2023, 12 in 2024, and nine in 2025. The consistent downward trajectory in both the number of submissions and average shareholder support suggests that this proposal category may be losing its efficacy as a shareholder proposal strategy. Investors may be perceiving these requests as less impactful or potentially redundant given other reporting requirements.
DEI Policy Reports Face Weakening Investor Enthusiasm
Proposals requesting companies to issue public reports on their DEI policies, practices, and related changes have also seen a marked decrease in investor enthusiasm. These resolutions generally ask for a comprehensive overview of a company’s DEI efforts, sometimes including specific demographic data for employees or detailing the research underpinning policy shifts. In the 2026 proxy season, five such proposals have been submitted, with two reaching a vote and receiving an average support of 6.1%. Three proposals were withdrawn before a vote.
This category first gained notable traction in 2025, with six submissions and one proposal receiving 18.2% support. However, the drop in average support from 18.2% in 2025 to 6.1% in 2026, while based on a small number of votes (one in 2025 and two in 2026), indicates a potential weakening of investor interest. This could be due to evolving corporate practices, increased voluntary disclosure, or a perceived lack of tangible impact from these specific reporting requests.
Workforce DEI Effectiveness Reports See Dramatic Drop
The most significant decline has been observed in proposals requesting reports on the effectiveness of workforce DEI efforts, utilizing quantitative metrics for hiring, retention, and promotion, often broken down by gender, race, and ethnicity. This category, historically the most popular pro-DEI proposal, saw 29 submissions in 2022, 35 in 2023, 27 in 2024, and 19 in 2025. However, no proposals in this category have been submitted thus far for the 2026 proxy season.
The average support for these proposals has also seen a steady decline, from a robust 36.9% in 2022 to 14.3% in 2025. This substantial drop in support may be a primary driver behind the complete absence of submissions in 2026, suggesting that proponents may be seeking alternative engagement strategies or have concluded that the shareholder proposal mechanism is no longer yielding sufficient results for this particular objective.
EEO-1 Disclosure Proposals Remain Relatively Strong
While many pro-DEI proposals have faltered, the call for companies to publicly disclose their EEO-1 reports and workforce diversity data, including breakdowns by race, ethnicity, and gender, has shown more resilience. Three such proposals were submitted in the 2026 proxy season, with two reaching a vote and securing an average support of 25.9%. One proposal was withdrawn.
Although this represents a decline from the 32.9% average support seen in 2025, it remains one of the better-performing pro-DEI proposal categories. This is consistent with a historical pattern of relatively strong investor backing for this type of disclosure, which received 45.5% support in 2022. The continued, albeit reduced, support suggests that investors still value transparency regarding workforce composition, even as other DEI-related requests struggle to gain traction.
Pay Equity Gap Proposals Show Declining Trend
Proposals requesting reports on gender and/or ethnic pay gap disparities have also seen a decline in both submissions and support. These resolutions typically ask for an assessment of pay gaps, along with associated risks related to recruitment, retention, and reputational concerns. In the 2026 proxy season, only one such proposal was submitted, and it was not presented for a vote. This continues a downward trend from a peak of 17 submissions in 2024, followed by four in 2025 and one in 2026. Average support has also decreased from 38.7% in 2022 to 28.0% in 2025. Despite this decline, average support for pay equity gap proposals has historically been relatively high compared to other pro-DEI initiatives, indicating a persistent investor interest in fair compensation practices.
Anti-DEI Shareholder Proposals Gain Momentum
In stark contrast to the struggles of pro-DEI resolutions, anti-DEI shareholder proposals have demonstrated significant growth and persistence, though they continue to receive negligible shareholder support.
Racial Equity Audits: A Declining Tactic for Anti-DEI Efforts
Ironically, proposals requesting racial equity audits have also seen a decline in their use by anti-DEI proponents. These resolutions generally seek an independent audit to analyze the risks associated with race-based initiatives and DEI policies. In the 2026 proxy season, none have been submitted to date, continuing a trend from a peak of 12 submissions in 2023. Only two proposals were submitted in 2024 and three in 2025. Crucially, average shareholder support for these anti-DEI audit proposals has never exceeded 2.6% in any tracked year, suggesting their limited impact on corporate decision-making.
Abolishing DEI Policies Sees Growing Submission Volume, Negligible Support
A notable trend is the increasing volume of proposals advocating for the abolition or assessment of risks associated with workforce DEI policies and initiatives. These resolutions often call for the dismantling of DEI departments, goals, or the evaluation of potential discrimination risks stemming from viewpoint or ideology inclusion in EEO policies.
In the 2026 proxy season, eight such proposals have been submitted, with three reaching a vote and receiving an average support of only 1.5%. Five proposals are not being presented for a vote. This category has shown consistent growth, rising from zero submissions in 2022 to three in 2023, seven in 2024, and peaking at 15 in 2025, before a slight moderation to eight through May 31, 2026. Despite this substantial increase in submission volume, shareholder support remains remarkably low, averaging between 0.9% and 2.2% annually. This indicates that while proponents are actively utilizing this strategy, the broader investor base is not aligning with their objectives.
Risk of Discrimination Proposals: High Volume, Low Support
Proposals requesting reports on the risk of discrimination based on social viewpoints have emerged as the most prolific category for anti-DEI shareholder activism. These resolutions typically ask companies to detail potential risks associated with excluding or including specific viewpoints or ideologies in their EEO policies, hiring, and training practices, as well as charitable contributions.
Through May 31, 2026, 34 such proposals have been submitted for the 2026 proxy season, with 18 having gone to a vote and receiving an average support of just 1.1%. Seven votes are still pending, and nine proposals were not presented for a vote. This category has experienced significant growth, expanding from zero submissions in 2022 to six in 2023, a substantial leap to 25 in 2024, and 51 in 2025. While the pace has moderated slightly to 34 through May 31, 2026, it remains the single largest source of anti-DEI shareholder proposals by volume. Despite this sustained high volume of submissions, shareholder support has consistently remained below 2.0% across all tracked years, underscoring a disconnect between the proponents’ agenda and the broader investor sentiment.
Key Trends and Final Thoughts
The 2026 proxy season data paints a clear picture of a rapidly evolving shareholder activism landscape concerning DEI. The near-complete collapse of several formerly active pro-DEI proposal categories, such as racial equity audits and reports on DEI effectiveness, is particularly striking. This suggests that proponents may be reassessing the efficacy of the shareholder proposal mechanism for these specific goals, potentially seeking alternative avenues for engagement or facing increased resistance.
Several factors may be contributing to this decline in pro-DEI proposals. Evolving legal interpretations and regulatory scrutiny surrounding DEI initiatives, coupled with market pressures and a potential shift in investor focus towards other governance or environmental issues, could be playing a role. Furthermore, companies may have become more adept at proactively addressing diversity concerns or may be perceived by investors as having reached a sufficient level of disclosure and action in these areas.
Conversely, anti-DEI proposals, particularly those focused on risks of discrimination based on social viewpoints and the abolition of DEI policies, continue to see substantial submission volumes. This highlights a persistent segment of shareholders actively seeking to challenge corporate DEI efforts. However, the persistently negligible shareholder support for these resolutions, averaging well below 2.0% annually, indicates that this sentiment does not resonate with the majority of investors.
Looking ahead, the data from the 2026 proxy season suggests that DEI-related shareholder proposals may be reaching a point of diminishing returns for both proponents and opponents. Pro-DEI advocates appear to be largely disengaging from this particular tool, while anti-DEI proponents continue to flood the proxy season with resolutions that fail to gain significant investor backing. The critical question for the remainder of the 2026 season and into 2027 is whether the volume of anti-DEI proposals will plateau or continue to escalate. Furthermore, the sustained low shareholder support raises doubts about the long-term viability of this strategy for anti-DEI activism. Companies will likely continue to monitor these trends closely, adapting their engagement and disclosure strategies in response to the shifting dynamics of shareholder advocacy.
