The corporate law landscape in August 2025 is undergoing significant changes, with new regulatory updates and shifts in governance standards that businesses and legal professionals need to stay ahead of. These changes highlight the increasing importance of corporate governance, shareholder engagement, and adapting to evolving compliance requirements.
One of the most significant updates this month comes from Institutional Shareholder Services (ISS), which launched its 2025 Global Benchmark Policy Survey. Set to close on August 22, 2025, this survey is aimed at gathering critical insights into various governance issues that are expected to shape corporate practices in the coming years. The topics covered in the survey include dual-class share structures, non-executive director overboarding, time-based executive incentive awards, and the governance of artificial intelligence (AI) risks. These issues are of growing importance as corporations face increasing scrutiny regarding their governance practices, and how they engage with shareholders on key topics.
The governance of AI, in particular, is an emerging area of focus. As artificial intelligence becomes more integrated into business operations, companies are finding it crucial to adopt appropriate governance measures to address potential risks. With the rise of AI, concerns around transparency, accountability, and ethical decision-making have become more pronounced, making it essential for corporations to stay ahead of regulatory expectations.
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Non-executive director overboarding, a practice where directors serve on multiple boards, is another key issue that is drawing attention. This practice is being closely scrutinized as it may impact a director’s ability to effectively oversee the management and strategy of each company. Shareholder engagement strategies are being refined, with an increasing emphasis on ensuring that directors are not stretched too thin, which could potentially impair their governance capabilities.
Time-based executive incentive awards, which are designed to align the interests of executives with long-term company goals, are also being revisited. These incentive structures have faced criticism in the past for potentially encouraging short-term thinking or rewarding executives disproportionately. As a result, many companies are now adjusting their incentive plans to focus more on long-term performance, aligning better with shareholder interests.
The 2025 Global Benchmark Policy Survey is a crucial tool for assessing these issues, as it provides key insights into institutional investors’ expectations and evolving trends in corporate governance. With these changes in mind, businesses must proactively adapt to these new reporting requirements, governance policy shifts, and evolving expectations. Companies that anticipate and act on these regulatory updates will be better positioned to thrive in a more regulated and transparent business environment.
The corporate landscape of 2025 is one of transition, with businesses needing to stay ahead of these key developments to navigate the future successfully. By proactively engaging with these emerging issues, companies can ensure they remain compliant and competitive in an increasingly complex regulatory environment.
