BP reduces CEO remuneration and proposes a simpler pay policy

BP remuneration policy

Oil giant BP, which last year lost its advisory vote on its remuneration report at its AGM,  has reduced the pay of its chief executive, Bob Dudley, and will propose a simpler pay policy to shareholders at this year’s meeting on 17th May.… Read the rest

Bombardier back tracks on executive pay rises

An outcry from politicians and the public has forced Canadian train and aeroplane manufacturer Bombardier to back track on planned pay rises for executives after it had announced job losses and accepted a loan from its government.
Bombardier pay rises

Canadian PM Justin Trudeau forced to defend Bombardier pay rises

Following the release of the notice of its annual general meeting in May and its annual disclosure of executive remuneration there were public protests outside the Bombardier headquarters in Quebec against the pay rises.… Read the rest

Tesco avoids prosecution for 2014 false accounting with fine

Tesco false accounting

Tesco has reached an agreement with the Serious Fraud Office (SFO) which, if approved by the court, will allow it to pay a fine for its false accounting in 2014 rather than face prosecution. Separately it has agreed with the Financial Conduct Agreement (FCA) that it will pay compensation to investors for market abuse when it presented misleading trading statements in August 2014.… Read the rest

Caterpillar: Federal investigations prompt investor concerns

Caterpillar federal investigation tax schemes

Investors in machinery, vehicle and engine manufacturer Caterpillar have called on its board to establish a special committee to investigate any risks related to tax schemes set up by the company which are now subject to investigations by US federal authorities.… Read the rest

Lafarge admits to failings in firm’s abandoned Syrian operations

LafargeHolcim Syrian operations

Building materials supplier LafargeHolcim has admitted to failings by company bosses running its Syrian cement plant. They engaged in dealings with armed groups as they sought to protect employees as the area became increasingly dangerous as a result of the civil war.… Read the rest

Yahoo CEO gives up bonus over 2014 cyber security breach

Yahoo CEO cyber security data breach

Marissa Mayer, Yahoo chief executive, has lost her 2016 cash bonus and forgone her 2017 equity award after an investigation found that executives at the technology company were aware of a cyber security data breach in 2014 but did not actively investigate the incident.… Read the rest

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

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

Sports Direct’s independent shareholders remain unconvinced

Sports Direct Logo

A majority of Sports Direct independent shareholders remain sceptical of governance improvements at the troubled retailer and last week voted against the re-election of its chairman, Keith Hellawell. Under UK listing rules, the retailer had been forced to hold a general meeting to vote again on his reappointment after most independent shareholders voted against him at the company’s AGM last September.… Read the rest

Sports Direct chairman hits out at “extreme campaign”

Sports Direct Logo

Keith Hellawell, Sports Direct chairman, has hit out at the company’s critics in its half year results and stated that: “I have no doubt that the extreme political, union and media campaign waged against this company has not only damaged its reputation and influenced our customers, it has impacted negatively on the morale of our people.”

Hellawell failed to achieve support for his re-election from the majority of Sports Direct’s independent shareholder at the AGM in September and will again seek re-election at a general meeting on 5th January.… Read the rest