Executive pay: UK fund managers trade group speaks out

Theresa May UK PM

UK fund managers members take executive pay reform seriously according to the UK’s Investment Association, which this week responded to the recommendations of the Executive Remuneration Working Group. In its new Principles of Remuneration, the IA suggests that rather than opting for the default Salary/Bonus/Long Term Incentive Plan (LTIP) pay structure,  firms should consider pay structures which fit their business and strategy.… Read the rest

SEC proposes universal proxy cards

US SEC improves shareholder democarcy

In a move to improve shareholder democracy the US Securities and Exchange Commission (SEC) has proposed that universal proxy cards be introduced that allow investors to vote for directors as they would if they attended the company’s annual general meeting. However, one of the Commissioner, Michael Piwowar, has expressed his opposition to the proposal claiming that the changes pander to special interests.… Read the rest

New CDP report adapting to a low carbon future

France vigilance law

CDP, the environmental NGO is calling on investors and firms to adapt quickly to a low carbon future. In a new report  Out of the Starting Blocks,  CDP in partnership with We Mean Business, presents its first annual report tracking companies’ progress on reducing greenhouse gas emissions in line with the goals of the Paris Agreement.Read the rest

Ardent Leisure’s AGM held days after theme park fatalities

Ardent Leisure Logo

Australian entertainments group, Ardent Leisure, held its AGM just two days after an accident at its theme park Dreamworld in which four people died and two children were injured on a river rapids ride. The out-going chairman, Neil Banaves, offered sincere condolences to the victims and their families but said that despite the seriousness of the incident they were still required to convene the AGM as planned.… Read the rest

Better governance – not tin ears

canstockphoto3458651

Set against a backdrop of stagnant economic growth and societal discontent with the political status quo, global investors and corporations face ever growing risks and challenges. Having initially stabilised the sinking ship in the immediate aftermath of the GFC, governments, regulators and institutions around the world are now turning their attention to the role of business and its role in supporting strong, healthy societies.… Read the rest

Proxy Votes: Mortgage Choice Chairman loses it

Peter Ritchie

Mortgage Choice (ASX:MOC) chairman, Peter Ritchie, has resigned abruptly, raging at proxy advisors for “damaging Australian business” after another bruising shareholder revolt at last week’s AGM.

Close to 80% of the Australian firm’s independent shareholders voted against the remuneration report, the third such vote, leading Ritchie to blame the outcome on analysts.… Read the rest

Global Governance Regulatory Round-up

Governance codes around the world

Governance codes around the world

Taiwan

Corporate Governance Best-Practice Principles update

In response to the latest G20/OECD Principles of Corporate Governance, Taiwan has updated its Corporate Governance Best-Practice Principles for companies listed on its stock exchanges.

Key changes include allowing investor engagment; creation of a company secretary position to handle corporate governance matters; electronic voting; eliminating cross-border voting barriers and shareholder meeting information to be published in both Chinese and English.… Read the rest

Inclusive workplaces: CBI lays out business case

Inclusive workplaces and effective staff engagement will boost the country’s economy as well as creating better places for work according to the Confederation of British Business (CBI). In a new report, CBI backs diverse and inclusive workplacesTime for Action: The Business Case for Inclusive Workplaces the CBI defines inclusion as: “an approach to running organisations which focuses on ensuring that every aspect of the business – from its leadership and management, to its workplace policies – contributes to helping employees perform at their best.”

The CBI’s report suggests that investment in training of staff and improved employee engagement would provide a boost to productivity and performance is an area of weakness in the UK economy.… Read the rest

Sky AGM: independent shareholders vote against James Murdoch

Over half of the Sky’s (LON: SKY) independent shareholders  rebelled against the election of James Murdoch as a non-executive director at last week’s AGM following his appointment as chairman earlier this year.

Overall Murdoch received 71.6% support for his re-election, the lowest vote in favour of any of the AGM’s resolutions.… Read the rest

Nevsun faces Eritrean forced labour trial in Canada

Nevsun Resources, (TSX: NSU / NYSE MKT: NSU) will face charges of forced labour in the Canadian courts, even though the allegations of  slavery by its Bisha Mining Share Company subsidiary occurred in Eritrea. However, the three Eritrean men will have to pursue their cases individually rather than as a class action as they had planned.… Read the rest