Snap go the votes!

Snap IPO shares no voting power

News of Snap Inc’s pending IPO arrived too late for our usual weekly round-up, but no matter, now that the full implications of the disappearing photo-apps disappearing votes have started to sink in, we can take a moment to reflect on what this really means for investors and good governance.… Read the rest

London Stock Exchange Group publishes ESG guidance

LSEG ESG guidance

The London Stock Exchange Group (LSEG) has issued guidance, through its Global Sustainable Investment Centre, setting out recommendations for good practice in Environmental, Social and Governance (ESG) reporting.

The LSEG said that the global guide responded to demand from investors for a more consistent approach to ESG reporting, which it said is now a core part of the investment decision process.… Read the rest

Say on Pay: what have the Victorians ever done for us?

Queen Victoria

In the run up to the introduction of the UK’s remuneration regulations in 2012, the headlines and much of the political commentary suggested that shareholders were in need of extra powers to control executive pay. What the Thomas Cook vote has shown clearly, however, is that – in the UK at least – there is more than one way to make a point.… Read the rest

Thomas Cook: joined up voting on pay

Thomas Cook pay

Travel company, Thomas Cook received a warning on pay this week at its AGM when the voting results showed that some investors at starting to take a joined up approach to remuneration-related voting. This is a signal to all companies seeking approval for their remuneration policies and new incentive plans this year that shareholders do not want the potential for excessive awards under these schemes.… Read the rest

US SEC: Comments sought on pay ratio disclosure rule

SEC Securities & Exchange Commission

The US Securities and Exchange Commission (SEC) is seeking comments from companies are encountering as they look to comply with the CEO Pay Ratio disclosure rule which took effect for financial years from 1st January 2017. The rule, hotly debated by business and investors alike, requests companies to disclose the ratio of the median of the annual total pay of all employees to the annual total pay of the chief executive.… Read the rest

UK Church Investors Group warn on CEO pay

Church Investors Group CEO pay warning

The Church Investors Group (CIG) has written to all FTSE 350 company secretaries outlining its revised voting policy for 2017 which includes a tough stance on executive pay. The CIG brings together the major church-based institutional investors and with their combined assets of approximately £ 17 billion aims to increase their impact through the joint voting policy.… Read the rest

President Trump begins rollback of Dodd-Frank

US climate change clean energy

President Donald Trump signed an executive order on Friday (3rd February) seeking a review of the 2010 Dodd-Frank financial regulatory framework. At the same time President Trump has rescinded the Fiduciary Rule which was designed to eliminate investment advisor conflicts-of-interest in respect of retirement plans.… Read the rest

USA: Investor Stewardship Group launches Codes

Investor Stewardship Group

The US has moved a step closer to a national stewardship and governance code with the launch of the Investor Stewardship Group. The signatories and supporters of the $17 trillion group are now urging all institutional investors to join the framework.… Read the rest

OECD surveys corporate governance in Asia

OECD Corporate Governance Principles

A new survey from the OECD highlights the development of corporate governance across 14 countries in Asia. While each of the countries have their own characteristics the study shows how international standards are taking hold across the region.

The authors of the study suggest that understanding the ownership structures in Asia is critical to ensuring the development of effective corporate governance standards.… Read the rest

Better governance: are board expectations realistic?

A significant proportion of corporate governance practitioners are unsure whether the UK’s system of corporate governance is fit for purpose. According to a poll published last week [01-Feb-17] by the UK’s corporate secretary professional body, ICSA,  and recruitment specialist The Core Partnership, 45% of respondents are on the fence, or just ‘maybe’ when asked if the current system is working.… Read the rest