Gage Johnson, general counsel at Paramount Group, Inc. (NYSE: PGRE), sat down for a video interview at Nareit's REITwise: 2025 Law, Accounting & Finance Conference® in San Antonio, Texas.
Johnson discussed the shifting landscape of corporate governance and stakeholder management. He highlighted a noticeable change in business priorities, with a recent focus on shareholder interests rather than the broader stakeholder model. This shift, according to Johnson, is driven by the current administration and the SEC's stance on shareholder-centric approaches.
He also addressed the decline in corporate emphasis on diversity, equity, and inclusion (DEI), noting that a significant number of companies, including REITs, are removing DEI references from key documents. Citing recent research, he mentioned a 60% drop in DEI references from 2022, signaling a shift in corporate messaging.
Johnson also covered the evolving approach of institutional investors toward sustainability matters. While sustainability remains a point of interest, particularly for investors in Europe, Johnson believes there is a reduction in the intensity of focus on these issues. He suggested that regulatory concerns and potential legal repercussions are influencing how institutional investors address social and political matters in their filings. Despite this, sustainability issues are still relevant, though the tone of their approach is expected to change.