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

WPP: did shareholders look before the LEAP?

WPP Martin Sorrell pay

WPP, whose chief executive Sir Martin Sorrell last year caused headlines for a £70m pay package, has announced its final investment performance figures for its controversial long term incentive scheme, LEAP.

The WPP figures show that Sir Martin Sorrell would receive £41.5m from the LEAP scheme for 2016 – compared with their value of 20.69m when the shares were granted in 2012.… Read the rest

Board gender pay gap revealed in Singapore

Singapore board diversity

More evidence of board gender diversity challenges were recently revealed, this time in Singapore. Female directors at companies listed on the Singapore Stock Exchange (SGX) are paid 56.8% of male directors’ remuneration on average indicating a 43.2% pay gap according to research by the National University of Singapore’s (NUS) Business School.… Read the rest

Purposeful Company Task Force: Corporate governance reform could boost UK economy

UK corporate governance

The UK’s Purposeful Company Task force, set up by the Big Innovation Centre, has called for major changes in corporate governance, asset management and backed the Financial Reporting Council’s proposal for company’s to report on how directors are having regard to stakeholders as required under company law.… Read the rest

S&P 100 companies increase disclosure on investor engagement

Nearly half of S&P 100 companies included information in 2016 that showed how they responded to shareholder concerns and made changes to policies, according to a new report from US corporate adviser, Equilar.

 

In 2016 42% of S&P 100 companies included disclosures in their proxy statements on how they modified their practices after engaging with shareholders compared to just 14% in 2012.… 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

Engagement fail: Imperial Brands pay policy stubbed out

Imperial Brands Pay Proposals Stubbed Out

Despite attempts at investor engagement, tobacco firm Imperial Brands has withdrawn the resolution amending its policy at its AGM next week (1st February). The company said that that the decision followed consultations with shareholders, and that the existing policy  approved by shareholders at its 2015 AGM  will continue to apply.… Read the rest

Tougher investor stance on executive pay signalled for 2017

The UK’s Pension’s and Lifetime Savings Association (PLSA) has advised its pension fund members to act more strongly on executive pay. It is advising funds oppose the re-election of the remuneration committee chair as a company director if they decide as shareholders to vote against a company’s remuneration policy.… Read the rest

Labour’s Jeremy Corbyn speaks out on executive pay

Jeremy Corbyn

Jeremy Corbyn, leader of the UK’s opposition Labour Party has outlined his party’s agenda for governance reform focusing on CEO pay ratios. In a speech in Peterborough last week (10th January) Corbyn added his voice to the current debate surrounding Theresa May’s governance green paper proposals.… Read the rest

CFA UK-backed study reveals continuing rising CEO pay

Research commissioned by CFA UK has examined the alignment of chief executive (CEO) pay and company value creation between 2003-2014/15 and found that total pay for the median CEO increased by 82% in real terms over the period. However, the median FTSE-350 company generated little in the way of a meaningful economic profit over the period 2003-2009 , and although performance improved from 2010 onwards the median firm generated less than 1% economic return on invested capital.… Read the rest

BlackRock set to vote against RemCo Chairs

Charlotte Villiers

Investment giant, BlackRock, has indicated it will be toughening its stance on executive pay after giving evidence to the House of Commons’ Business, Energy and Industrial Strategy (BEIS) select committee. In future it will now hold remuneration committee chairmen to account for the decisions they have made; a move which Manifest recommended to the Committee at the previous session.… Read the rest