I've Sat Through the S&P Global AGM So You Don't Have To!
Grab a coffee! Here’s the essential lowdown on their 2024 triumphs, what they’re betting big on (spoiler: GenAI is everywhere!)
Odes to the Old Guard & Welcomes to the New Crew
It seems every AGM has its share of heartfelt farewells, and S&P Global's was no different. CEO Martina Chung kicked things off with a big thank you to the retiring directors, giving special nods to former Chairman Richard Thornburg for his 14 years of service and her predecessor, Doug Peterson. Mr. Peterson, in particular, received heaps of praise for his "extraordinary empathy and wisdom" and for producing "exceptional results" during his tenure, transforming the company and massively increasing its market cap. Bob Kelly and Gay Huey Evans also got warm send-offs for their board contributions.
On the arrivals front, a big welcome was extended to the new CFO, Eric Abouaf, who's apparently "off to a very strong start."
The 2024 Report Card: Show Me the Numbers!
So, how did S&P Global actually do in 2024? Pretty darn well, according to Ms. Chung.
Financial Fireworks: Revenue shot up by 14%, and the adjusted operating margin impressively expanded by 310 basis points to a chunky 49%.
Shareholder Sweeteners: The company continued its impressive 52-year streak of dividend increases, bumping it up by 5.5%. In total, a hefty $4.4 billion was returned to shareholders in 2024 through these dividends and share repurchases. The generosity continued into Q1 2025, with over $900 million more heading back to shareholders.
Strategic Slimdown: Big news also included the "intent to separate the mobility division of S&P Global into a stand-alone public company." One to watch!
While celebrating the wins, the company acknowledged that things like "trade conflict and supply chain risk, as well as an evolving geopolitical landscape" make gazing into the 2025 crystal ball a bit tricky.
S&P Global's Big Bets: Five Areas to Watch
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Looking ahead, CEO Martina Chung outlined five key "positive momentum" areas where S&P Global is focusing its investment and expects to shine:
Benchmarks Bonanza: In a world buzzing with geopolitical and macroeconomic risk, the hunger for trusted benchmarks across debt, equity, and commodities is apparently bigger than ever. S&P Dow Jones Indices is also keeping up with the times, supporting clients with everything from multi-asset class and thematic indices to the rise of active ETFs and digital wealth management.
The Allure of Private Markets: This once-niche area is booming, and S&P Global is well-stocked with "ratings, valuations, data, software, and indices" to serve this segment.
Data Deluge (in a Good Way!): With over one trillion data points (yes, trillion with a 'T'!), the company is working on better ways to connect this vast resource to give clients more value, faster. Think integrating Visible Alpha data into Capital IQ Pro for deeper insights.
GenAI – The New Engine Room: Artificial Intelligence, specifically GenAI, is having a "profound and accelerating effect," and S&P Global is all in. They're using it to boost their own productivity and bake it into their products, like "Al ready data, S&P Global Data integrated into Microsoft Copilot, Kensho LLM ready APIs, and Chat dot ai for Platts Connect." The future? AI agents significantly improving customer workflows.
Energizing the Energy Transition: Whether it's traditional energy or the shift to renewables, S&P Global aims to support clients wherever they are on that journey. Their energy transition and sustainability revenue hit $359 million in 2024 and is expected to grow.
Ms. Chung also gave a shout-out to the company culture, emphasizing her commitment to empowering S&P Global's 40,000+ people.
The Formalities: Voting, Proposals, and a Bit of Pushback
Then came the "business portion" of the meeting, helmed by outgoing Chairman Richard Thornburg. After confirming a quorum was present, it was time to vote:
Proposal 1: Electing Nine Directors. All nominated directors were elected. Smooth sailing.
Proposal 2: Approving Executive Compensation (Advisory). This also got the green light from shareholders.
Proposal 3: Ratifying Ernst & Young as Auditors for 2025. Approved, as is common.
Proposal 4: Shareholder Proposal on Clawback Policy. Things got a little more interesting here. A proposal was put forward by Mr. John Chevedden to amend the company's policy on recouping executive incentive pay, suggesting it apply if conduct or negligence (not just misconduct) was found. He cited Wells Fargo as an example of why stronger policies are needed. However, the Board recommended voting against this proposal, and ultimately, it was not approved by shareholders.
Any Questions? Bueller? Bueller?
After the formal business was adjourned, it was time for the general Q&A session with CEO Martina Chung. The grand total of questions submitted by shareholders at this point? Zero. That's right, not a single one! Perhaps everyone was satisfied, or maybe the virtual format had them saving queries for another time.
So, What's the TL;DR?
S&P Global painted a picture of a company performing strongly in 2024, returning significant capital to its shareholders, and making strategic bets on future growth areas, with GenAI and data at the forefront. Leadership transitions are underway, with a nod to past successes and a focus on an empowered internal culture. The AGM itself ran smoothly, with all company proposals passing and a shareholder proposal being voted down. And apparently, everyone was too shy (or too informed?) to ask any questions at the end!
And there you have it – you're now officially up to speed on the S&P Global 2025 AGM! You can thank me later.
Disclaimer: Please remember, the thoughts expressed here are just opinions based on publicly available information like earnings report. This is not financial advice! Investing involves risks, and you should always do your own research and consider your personal financial situation before making any investment decisions. Talk to a qualified financial advisor if you need personalized advice