The Investor Rebuttal—Shareholders Say DEI Still Matters
- Holly Smithson
- 1 day ago
- 2 min read
In 2025, corporate DEI programs have faced public pressure, political scrutiny, and legal uncertainty. But inside the boardroom, a different story is unfolding: investors are speaking—and they’re standing behind diversity.
Last month, Merck shareholders voted overwhelmingly in favor of the company’s DEI efforts, rejecting a proposal to scale back its inclusion initiatives. With over 85% support, it was a clear message: strategic diversity is not only welcome—it’s expected.
“Shareholders get it,” said one Athena partner in the life sciences industry. “DEI is material to performance, talent, and innovation. And they want leaders who act accordingly.”
The Rise of Pro-DEI Shareholder Proposals
According to data from Impactivize, a growing list of over 400 companies reaffirmed their commitments to diversity, equity, and inclusion in 2025, and 75 shareholder proposals in support of DEI were filed across U.S. corporations. These resolutions called on boards to:
Disclose workforce demographic data
Audit racial and gender pay equity
Protect DEI roles from budget-driven cuts
Align executive compensation with inclusive leadership metrics
While a small but vocal minority is pushing “anti-ESG” proposals, these have been largely unsuccessful. In contrast, support for well-structured DEI and human capital proposals has held steady—or increased in sectors like pharmaceuticals, tech, and financial services.
Merck: A Case Study in Long-Term Thinking
Why did Merck’s shareholders support DEI so decisively? Because the business case remains strong:
50% of Merck’s U.S. employees identify as racially or ethnically diverse
The company ties inclusive leadership to executive performance reviews
It has maintained top scores on external benchmarks like the DiversityInc Top 50 and the Human Rights Campaign’s Corporate Equality Index
By embedding inclusion into its culture and accountability structures, Merck has made it clear: this is about talent, trust, and long-term value—not politics.
Athena’s View: Performance Over Politics
At Athena, we see growing alignment between investors and inclusive leadership—not because of ideology, but because of outcomes. Shareholders are not asking companies to “do DEI.” They’re asking companies to lead smarter, retain better, and innovate more effectively. Inclusive cultures do all three.
“The market is correcting short-term fear with long-term vision,” said an Athena Academy facilitator. “Leaders who stay the course on inclusion will be the ones future-proofing their businesses.”
Key Takeaways for STEM Companies:
Don’t misread the moment. Headlines may signal retreat, but shareholder trends show demand for transparency and inclusive strategy.
Embed accountability. Tie inclusion to business KPIs—like retention, innovation cycles, and leadership pipeline health.
Lead visibly. Whether you’re in biotech, AI, or aerospace, culture is your competitive edge. Investors are watching.
Source: Impactivize