UK Pension Funds: “Executive Pay is too High”

PLSA Logo

The Pensions and Lifetime Savings Association (PLSA), the membership body for UK’s pension funds, has published its AGM Season Report 2016, focusing on executive pay using data provided by Manifest. A survey of PLSA members for the report found that 87% of respondents believe executive pay is too high.… Read the rest

Women increase representation on US company boards

chart of women on boards in usa

The numbers of women on boards in the US has risen in the past year according to the latest  annual 2020 Gender Diversity Index (GDI) produced by the campaign group, 2020 Women on Boards. The organisation aims to  increase the percentage of women on US company boards to 20% or greater by the year 2020.… Read the rest

Executives feel short-term pressure despite its costs research finds

New research from CLT Global (formerly “Focusing Capital on the Long Term”) highlights the challenges and costs that senior business executives world-wide are facing with the rise of short-termism.

The key findings of the report, are that 87% of executives report feeling the most pressure to demonstrate financial results within two years, up from 79% in a similar survey from 2013; emerging market executives were significantly more likely to report increasing short-term pressure (82%) than their peers in Europe (64%) or North American (65%); and executives from companies with a strong commitment to long-termism were 26% less likely to say they would decrease discretionary spending and 22% less likely to delay new projects to meet earnings targets when compared to their peers at more short-term oriented companies.… Read the rest

FTSE 100 improves carbon reporting and boosts commitment to green energy survey finds

Communications firm BT has topped the rankings of Carbon Clear’s assessment of FTSE 100 company’s carbon reporting for the third year running.

The carbon advisory service’s survey scores the companies based on their monitoring, reporting and verification; their carbon strategy; carbon reduction; stakeholder engagement and innovation.… Read the rest

Singapore tops 2016 Asian corporate governance rankings

CG Watch 2016, a survey of 12 major Asia-Pacific markets and 1,027 Asian companies has ranked Singapore as Asia’s top corporate governance (CG) performer followed by Hong Kong, Japan, Taiwan, Thailand, Malaysia, India, Korea, China, Philippines and Indonesia.

The biennial survey of Asian markets was carried out by brokerage and investment group CLSA in collaboration with the the Asian Corporate Governance Association (ACGA ) and while Australia was included in the research it was excluded in the market rankings  so as not to skew past results as its CG score was significantly higher than top- ranked Singapore. … Read the rest

TUC criticises UK pay gap

The TUC has claimed that it took the the UK’s highest paid chief executive (CEO), Martin Sorrell, less than 45 minutes to earn what an average UK worker earns over an entire year, following its analysis published at its annual congress held this week.… Read the rest

Institute of Directors ranks FTSE100 companies on their corporate governance performance

British American Tobacco has topped a ranking by the UK’s Institute of Directors (IoD) of FTSE100 companies by their corporate governance performance. The other companies in the top five are Unilever, Diageo, Sage Group and Next.

The 2016 Good Governance Report  measured the companies using a list of objectives, measurable factors drawn from public sources and by conducting a survey of stakeholders’ perceptions of corporate governance to produce a final score.… Read the rest

UK executive pay reforms drove reputation management study finds

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.… Read the rest

South African directors positive about governance

In the first survey of director sentiment in South Africa conducted by the country’s Institute of Directors (IoDSA) its top bosses are more positive than negative in their perceptions of governance in contrast to their economics and business sentiments which are more negative.… Read the rest

Aligning board talent and company strategy is a key challenge survey finds

Aligning board talent with a company’s long-term strategy is a critical challenge for three-quarters of corporate directors according to a global survey by KPMG’s Board Leadership Center. The advisory firm surveyed more than 2,300 directors and senior executives across 46 countries and found that three in five want more diversity and viewpoints on the board.… Read the rest

Two thirds of large UK businesses have suffered a cyber attack in the past year

Two thirds (65%) of large UK companies have admitted to having suffered a cyber breach in the past year, according to a survey conducted for the government.

The study also found that 69% of companies said that senior managers were aware of the problem but only just over half (51%) had taken the recommended actions to avoid cyber attacks. … Read the rest

UK companies increasingly look externally for CEO recruits

UK companies appointed more chief executives (CEOs) from outside their companies in 2015 than ever before according to a global survey of CEO succession conducted by PricewaterhouseCoopers (PwC).

The study which tracks CEO  succession in 2,500 publicly listed companies, including 300 in the UK, showed that over half (58%) of all CEO appointments to UK companies in 2015 were external hires.… Read the rest