The Digital Shake-Up: Modernising Shareholder Communication in 2025

Dean Little, CEO and co-founder of Proxymity 

At Apple’s recent shareholder meeting, two proposals challenged the company’s stance on diversity and its partnership with OpenAI. Neither were expected to pass, yet both were indicative of a growing tension; shareholder communications are no longer just about dividends and board appointments, they are now forums for political, ethical and technological debates.

As companies face pressure from all areas of the investment landscape, including investors, regulators, activist groups, outdated, opaque communication practices will fail to meet their communication needs.

While the financial sector continues to rapidly modernise, the way companies engage with shareholders remains stuck in the past. If UK firms want to stay competitive in an increasingly politicised and digitised investment environment, modernising shareholder communications is no longer optional, it is essential. This is why we have developed our suite of products to help fully digitalise investor communications, allowing issuers to engage directly with investors, reducing reliance on intermediaries and streamling the whole process.

 

Growing demand for digital shareholder communication

 

Investor expectations have shifted dramatically in recent years. Today’s investors, especially retail investors, are expecting seamless, real-time digital experiences. A recent study reveals that 75% of investors now prefer digital updates, while 60% express dissatisfaction with current communication methods citing a lack of clarity and responsiveness.
Despite the growing push for digitalisation, 66% of FTSE 350 companies still hold in-person AGMs, indicative of slow adoption.

Companies such as BP, Shell, and National Grid have called for digital shareholder registers to ensure the UK remains competitive in global markets. Meanwhile, across the Atlantic, the US Securities and Exchange Commission (SEC) previously introduced rules aimed at enhancing and standardising climate-related disclosures under the Biden administration. However, these efforts have since been dropped with the change of presidency, reflecting the broader ESG backlash in the US. Despite this, investors will continue to request real-time, transparent communications on climate risk from businesses.

In the US, financial institutions like J.P. Morgan, Northern Trust, and Banco Santander are adding pressure to modernise by adopting blockchain-based solutions to improve transparency and streamline proxy voting. With the global regulatory landscape moving rapidly, digitalisation is becoming the new standard for shareholder engagement, pushing markets to modernise.

 

 

Role of digitalisation in modern shareholder engagement

 

Digital solutions offer significant advantages for shareholder communication, particularly with enhancing transparency and efficiency. Traditional methods of communication create bottlenecks that not only increase inefficiencies but also raise costs, whereas the latest technologies on the other hand, enable real-time updates, instant proxy voting, and streamlined governance processes. These tools foster transparency, reducing misinformation and enhancing trust between issuers and investors.

Digitalisation also empowers shareholders by offering a more inclusive, real-time approach to engagement. With investors having diverse interests and priorities, it can often be difficult for companies to meet all their needs. However, digital solutions create a middle ground where all investors, whether retail or institutional, can participate actively, efficiently, and cost-effectively.
A fully digital shareholder framework allows issuers to communicate directly with investors, reducing reliance on intermediaries and cutting unnecessary delays.

Proxymity, for example, is leading the charge in this space. Products such as Proxymity’s Vote Connect allow investors to receive real-time AGM updates and cast proxy votes instantly, increase participation by eliminating delays, and helps issuers comply with evolving regulatory expectations while staying ahead of investor demands.

 

Preparing for the 2025 AGM season with digital-first governance

 

Shareholder activism continues to rise and companies need to embrace digital solutions as activist investors become more influential, demanding greater transparency and accountability. In the US, shareholder activism surged by 15% in early 2024 compared to the previous year. High-profile activist campaigns have targeted major corporations like Disney, Apple, and BlackRock, demanding action on executive compensation, board diversity, and environmental, social, and governance (ESG) commitments.

Digital shareholder frameworks allow companies to address concerns proactively, providing a direct line of communication to investors. This proactive approach helps companies avoid crisis-mode reactions and demonstrates their commitment to transparency and accountability. Without digitalisation, firms risk falling behind in attracting and retaining investment from modern, digitally savvy investors. The rise of pass-through voting in the US, and increasingly in the UK and Europe, enables retail investors in mutual funds to vote directly on shareholder proposals, further increasing the demand for digital engagement.

For companies looking to attract and retain investment, adopting digital tools is no longer optional. Investors now expect continuous engagement throughout the year, not just once a year during annual general meetings. Proxymity’s platform, which facilitates real-time communication and voting, ensures that companies are able to meet this demand for year-round access to governance updates and voting rights to keep pace with evolving markets. Financial institutions like Citi, J.P. Morgan, and State Street are investing in digital-first shareholder engagement tools, such as Proxymity’s suite of products, reinforcing the urgency for global adoption.

Shareholder governance should follow suit in the digitalisation of markets. With the support of innovators providing real-time communication, instant proxy voting, and enhanced transparency for investors, companies that embrace digital solutions today will future-proof their shareholder engagement strategies, ensuring they remain competitive and aligned with the expectations of modern investors. The future of shareholder communication is digital, and the time for companies to act is now.