Shareholders vote down Pearson’s remuneration report

Pearson remuneration report

Educational services company Pearson, lost the vote on its remuneration report at its AGM last week (5th May). There were also significant votes opposing the company’s remuneration policy and the re-election of the remuneration committee chair.

If abstention votes are included in the total of votes there was a 61% vote against the remuneration report, 32% vote in favour and 7% abstention rate.… Read the rest

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

Shareholders reject Crest Nicholson’s pay report

Crest Nicholson logo

FTSE 250 construction company Crest Nicholson, which emphasises its sustainable approach to housing developments, had its remuneration report rejected by shareholders at its AGM this week. There was a 58% vote against the non-binding annual remuneration implementation report. In a separate binding vote on the company’s remuneration policy there was a 96% vote in favour.… 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

EU: Shareholder Rights Directive Mk II

Flag of European Union

The EU’s council of permanent representatives has endorsed an agreement between the Slovakia, which holds the presidency of the European Council,  and the European Parliament that agrees revisions to the second Shareholder Rights Directive.

EU institutions agree on need for more shareholder engagement

Lucia Žitňanská, Minister for Justice of Slovakia said: “The financial crisis revealed that in many cases shareholders supported excessive short-term risk-taking by managers.Read the rest

Tense Australian proxy voting season

Shareholders of Australian companies are showing their muscle in this year’s proxy season with significant opposition votes over the governance of retailer Harvey Norman and a rejection of executive pay at the Commonwealth Bank of Australia.

The Australian Shareholders Association has called on the chairman of  Harvey Norman, Gerry Harvey, to resign and for an independent non-executive director to replace him.… Read the rest

US Council of Institutional Investors speaks out against regressive “Choice” Act

The US Council of Institutional of Investors (CII) has written to the House of Representatives’ Financial Services Committee objecting to a number of proposals in its Financial CHOICE Act – which has now been approved by committee.

This proposed law is part of earlier attempts by the Committee – in a series of bills passed in the summer – to repeal large chunks of the Dodd-Frank Act which was enacted following the 2008 financial crash and subsequent recession and aimed to address some of the failings of the financial system.… Read the rest

ShareSoc urges a vote against excessive pay at housebuilder Berkeley

Tony Pidgley CBE Chairman of Berkeley

Tony Pidgley CBE
Chairman of Berkeley

ShareSoc, which represents individual shareholders in the UK, is advising its members to vote against the remuneration report of house builder Berkeley Group at its AGM on 6th September.

Tony Pidgley, co-founder and executive chairman, of Berkeley, received £21m in the financial year ending 2016 and £23m in the previous year.… Read the rest

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

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 Minister and reported on in a previous blog.… Read the rest

Institutional investors accused of not doing enough to curb excessive US CEO pay

Leading mutual funds and pension funds so far have taken little action to curb the pay of chief executives (CEOs) in the US according to a report by As You Sow, a non-profit organisation that promotes environmental and social corporate responsibility through shareholder advocacy.… Read the rest

Manifest Publishes Global Regulatory Review

Manifest has this week published a Global Regulatory Review, keeping customers abreast of the latest developments in corporate governance and related disciplines around the world.
 
Global capital markets and investors expectations towards them have changed radically over the past 20 years.… Read the rest

Switzerland and the Minder Initiative: What would Spiderman say?

The Swiss Federal Council recently published their “Proposal for an Ordinance against abusive remuneration practices” in response to the successful popular referendum on what has been dubbed the “Minder Initiative”.  It is the first formal consultation stage ahead of the tabling of a formal legislative proposal, timetabled for November, in time for a January 1st 2014 implementation date.… Read the rest