This season has also seen activist investors concerned about long-term incentive plans and bonus schemes involving directors, and particularly when those directors are also significant shareholders. The Local Authority Pension Fund Forum recommended that its member funds oppose one particular such scheme, saying it was inappropriate to “establish an incentive plan with a single board member in mind”. … [Read more...] about The Return of Shareholder Activism in UK: The 2014 Annual General Meeting (AGM) Season
It may be that shareholders were generally intending to mark companies’ cards in advance of the slew of new policies that will be put up next year. However, there was some bewilderment expressed by companies who had consulted but then had significant votes against, for example: “The fact is that many of our shareholders agreed with us on this [setting performance targets] – others didn’t. Attitudes towards what is appropriate remuneration constantly evolve and what is right one year isn’t necessarily right the next.” … [Read more...] about Remuneration at 2016 UK AGMs: How Did The FTSE 100 Do?
All looking positive so far, but what about the 20% of FTSE100 companies which have not fared so well in the implementation report stakes? Well, no FTSE100 company has dropped under the 50% threshold (which would mean putting the remuneration policy up for a vote next year). Most of the remaining 20% received votes of over 80% in favour, but there have been a few casualties over the past few weeks. Most notable was Centrica, where just over a third of shareholders voted against the remuneration report. Centrica has been relatively quiet in the world of executive remuneration in the last two years. It has previously received votes in favour of 98.3% and 93.2%. However, this year many shareholders were unhappy with the pay package of the new CEO, Iain Conn and made their displeasure heard. … [Read more...] about FTSE100 AGMs and DRRs – the AGM season so far… re: UK Executive Remuneration
For companies which have not yet released their DRRs, those already published will provide useful examples if they are facing any issues in this, the second year of the new DRR regulations. The tables have turned and now the majority of FTSE100 companies have stuck with their policy from last year and only the implementation report will be voted on at the AGM. The intended longevity of the remuneration policy now appears to be prevailing. … [Read more...] about FTSE100 DRRs And AGMs – It’s That Time Of Year Again!
Although the 2018 AGM season is expected to be fairly quiet, as fewer companies put their Remuneration Policy to shareholders for approval, there are a number of significant changes on the horizon (as discussed in our August blog post.) The IA’s focus for the 2018 AGM season reflects this: few changes have been made to the Principles and those which have are in line with the prevailing approach to executive remuneration and the changes to come. No wonder it feels a little like the calm before the storm… … [Read more...] about Investment Association sets bar for 2018 AGM season