NEST Appoints Manifest & Co-op in Responsible Investment Partnership

The National Employment Savings Trust (NEST) has appointed The Co-operative Asset Management (TCAM) and Manifest to support its responsible investment strategy. In an innovative joint tender, TCAM and Manifest outlined an robust solution to manage and develop NEST’s evolving stewardship responsibilities. … Read the rest

Shareholder engagement on pay can work!

Today’s announcement by Cairn Energy that it will withdraw resolution 2 at its General Meeting next week, demonstrates that shareholders can act on egregious pay awards when they really want to.

Cairn had proposed the award of shares to Sir Bill Gammell with a value of £2.5m (based on average closing share price for the 3 days prior to 6 January 2012), to be released after three years.… Read the rest

Remuneration Committee “Cronysism” – digging deeper

 

Since we published data on the number of executive directors in the FTSE 100 sitting on remuneration committees of other FTSE 100 companies, a common question we received was … what if you look beyond the FTSE 100? So we have re-run the numbers, looking at the FTSE All-Share (i.e.… Read the rest

Shareholder Nomination Committees – just a different form of cronyism?

Last week, in a speech at a High Pay Commission seminar, the shadow business secretary Chuka Umunna and former Business Secretary Lord Myners both put forward arguments in favour of shareholder nomination committees as a way of improving corporate governance. Rather than the current UK model whereby the Nomination Committee is made up of members of the Board of Directors, they suggested that we should be following the “European model” (well, the Swedish one actually, although there are a few Finnish companies with the Finnish Government as a major shareholder tagging along).… Read the rest

Crony capitalism or mass hysteria?

 

Journalists and politicians must not have enough to do in the post-Christmas dip. “Action looms to curb executive pay” proclaims the FT on January 5 the day before the UK’s Prime Minister David Cameron devotes precious prime time on Radio 4’s flagship breakfast talk show “Today” to declare he is “not satisfied with top pay”.… Read the rest

“Remunerationgate” – the median isn’t the message

Whether it’s a case of “In war, truth is the first casualty” or “Lies, damned lies, and statistics”, sound arguments for reform can easily be undone by the careless use of dodgy data to fit a chosen position.

The debate around reform of executive remuneration is in grave danger if the UK government continues to rely on data which has been manipulated to fit a particular lobbying position.… Read the rest