Manifest-I

Welcome to Manifest-I the blog of Manifest, the proxy voting agency. Here we take a wide ranging view of topical governance and stewardship issues. Please feel free to add your comments and join the debate.

Companies and investors need to act on executive pay, PwC believes

Tom Gosling of PwC's Reward Practice

While regulation on directors’ pay can be counter-productive the business community needs to address the concerns of politicians and the wider public about pay inequality in the UK, advisors PricewaterhouseCoopers (PwC) have warned in a report. This is a response to Teresa May’s pledge to tighten up executive pay regulation made just before she became Prime More…

UK's pay reporting rules did not curb executive pay

The initial response of the top UK companies to new reporting requirements was not to curb executive pay or improve the link CEO pay and firm performance at FTSE 100 companies, but led instead to “opportunistic reporting for the sake of reputation management,” says a study from Cambridge Judge Business School and King’s College London.

The research More…

Groups call for more radical thinking on executive pay

More radical solutions to rising executive pay need to be found than those proposed by the Investment Association’s Executive Remuneration Working Group in its recent interim report, according to the Institute of Business Ethics (IBE) and the High Pay Centre.

Responding to the IA’s consultation on the report the High Pay Centre said the working group More…

WPP's remuneration vote passes - with higher dissent

Despite public calls for pension funds to vote against WPP’s remuneration report at its AGM this week (8th June) the resolution was passed with 33.5% dissent – higher than 2015’s 22.2% protest vote.

ShareAction had condemned the chief executive’s (CEO) Sir Martin Sorrell’s £70m pay packet, which makes him the highest paid CEO in the More…

US remuneration committee chairs get less support after losing say on pay votes, study finds

Executive pay firm, Semler Brossey, has analysed the relationship between the shareholder support given in elections of remuneration committee members and chairs and the result of the say on pay votes at US company AGMs.

The study of director election results between 2014 and 2016 found that over 80% of director elections have received vote support above More…

Single Figure Calculations prove tricky for Legal & General

The insurer and institutional investor Legal & General plc (L&G), had to correct its annual report pay figures for chief executive, Nigel Wilson, on the eve of its AGM last week (26th May).

L&G, whose investment division LGIM is active in corporate governance issues, admitted that awards from Wilson’s 2012 performance share plan had not been included because More…

Shell has muted opposition to executive pay

Royal Dutch Shell experienced a relatively modest level of investor opposition to its executive remuneration report at its recent AGM with a 14% vote against, this follows the rival oil company BP’s loss of its pay vote last month. However, Manifest data shows it is the highest level of opposition Shell has received in the past six More…

Ferrexpo forced to hold second vote on director re-appointments

Ferrexpo, which manufactures iron ore pellets which are used in the steel industry, has received a high level of opposition from shareholders to a number of resolutions at its AGM this week (19th May) including those relating to the appointment of non-executive directors. This has meant the company will need to call a second vote to seek approval More…

More companies face investor opposition to executive pay this week

Standard Life, which as an institutional investor is known for its stewardship approach, faced opposition to the pay awarded to its chief executive, Keith Skeoch at its recent AGM (17th May). The investment and insurance company received a 22% vote against it remuneration report. This week’s other UK AGM results also showed continuing disquiet More…

Executive Pay watch emphasises pay gap between CEOs and other employees

The US federation of trade unions, the AFL-CIO, has released its latest Executive Paywatch data which it says shows the average CEO of an S&P 500 company received an annual income of $12.4 million in 2015—335 times more money than the average rank-and-file worker. The AFL-CIO said its figures showed that in 2015 the average production and More…