Corporate governance reframed: a 2026 outlook

If 2025 revealed notable shifts in the balance of power between stakeholders, shareholders and management across markets, 2026 is set to see governments exerting greater intervention in shaping corporate governance rules and behaviour.

The US is the most striking and unexpected example of this reframing. What began as a backlash against stakeholder capitalism – such as pressure on both US and multinational companies to dismantle Diversity, Equity and Inclusion (DEI) programmes – has moved far beyond that. In 2025, this shift accelerated, marked by the muting of shareholders in a regulatory environment shaped by the US administration. Some corporates have been allowed to default unvoted retail shareholder votes in favour of management at annual general meetings (AGMs), remove shareholder resolutions from AGM agendas, or bar shareholders from filing class-action litigation. While this development is often framed as a transfer of power from shareholders to management, the resulting increase in managerial autonomy is, in fact, illusory.

“I’m shocked by how frightened CEOs are,” former Secretary of State John Kerry told the Financial Times in November 2025, referring to the retreat from green-energy investment since Trump’s election. While political intervention remained largely muted under a market-led policy framework, the surge in national security and broader economic nationalism considerations has enabled more frequent and overt government involvement in corporate decisions. This shift became evident in 2025, notably through the introduction of a golden-share provision in the US Steel - Nippon Steel transaction, as well as heightened political intervention around Intel, including public pressure on its leadership. The resulting rebalancing is therefore not one of shareholder authority giving way to managerial autonomy. Instead, it reflects a shift from market-led governance toward increased state involvement in corporate decision-making. In 2026, this dynamic is likely to intensify as the US administration prepares to take additional direct equity stakes in strategically important industries.

In Europe, national security-related interventions also came to the fore in 2025, such as the Dutch government invoking emergency powers to take effective control of a domestic chipmaker and curtail the influence of its Chinese parent company. However, state involvement has long been part of the European governance landscape. While the current geopolitical environment makes further intervention on sovereignty or national security grounds in 2026 likely, this represents less of a step change. What is more distinctive is the growing emphasis on deregulation and simplification in the name of competitiveness, set against the backdrop of a changing world order. Consistent with the Draghi report’s identification of equity markets as a strategic priority, and against a backdrop of rising de-listings, governments and regulators are increasingly willing to reconsider governance requirements. A more flexible approach, already under way in some markets, is likely to gain further traction in 2026, particularly as the absence of strong investor pushback continues to enable this trend.

In Asia, domestic political incentives are also shaping governance trajectories heading into 2026. Inspired by Japan’s success and supported by the growth of retail investors, who in turn are voters, South Korea’s government is focusing on increasing shareholder value. This is being pursued through a series of legal and exchange-driven reforms, such as the landmark introduction of a fiduciary duty for board directors to shareholders. While the early stages of reform sparked significant investor enthusiasm, illustrated by the 2025 highs in the KOSPI index, 2026 will be the real test of the robustness of these initiatives, including execution. In Japan, stakeholder considerations are likely to come to the fore with the newly elected Prime Minister signalling the need for corporates to address the longstanding issue of wage growth.

For years, investors assumed a gradual harmonisation of governance practices in an increasingly globalised world. That assumption no longer holds at a time when government-led interests are resurfacing and disrupting the traditional and predictable balance of power between management and shareholders. A key issue to watch in 2026 will be whether these developments trigger tensions with shareholders and how markets begin to price them in. Corporate governance is set to be increasingly used as a political instrument, underscoring its importance in a changing world order.

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Marion Plouhinec is a Research Coordinator and Senior ESG Analyst at French headquartered asset manager Carmignac. 

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