Shareholders have again showed their discontent over excessive executive pay packages with large votes opposing remuneration reports and policies. Engineering company Weir lost its binding vote on its remuneration policy – with a 72% vote against – while at building materials supplier CRH there was a 41% vote in opposition to its policy although in its case the vote […]
Read MoreUK Pay for Performance not Fit for Purpose Increasing disparity between CEO & stakeholder rewards Scepticism and loss of public confidence in business Coming in the wake of some large votes by UK shareholders against executive pay, the Executive Remuneration Working Group launched by the Investment Association has produced its interim report providing recommendations that it hopes […]
Read MoreMining group Anglo American faced a 42% vote opposing its remuneration report at its AGM this week. Though not a complete rejection the company acknowledged that it needed to engage with shareholders further in advance of the remuneration policy vote next year which will be binding. Manifest gave Anglo-American’s remuneration a grade D in its […]
Read MoreThe 2016 AGM season started with major defeats for two FTSE100 companies. Last Thursday (14th April) oil giant BP and medical equipments supplier, Smith & Nephew saw their remuneration reports rejected by shareholders at their AGMs. At the BP AGM there was a 59% vote against the remuneration report and at Smith & Nephew 53% of shareholder votes […]
Read MoreTop executive pay should not be linked to performance as the work they do is difficult to measure and such pay may actually be damaging to companies, according to a recent article by two academics in the Harvard Business Review. It is not unusual for 60-80% of the pay of chief executives and other senior leaders, […]
Read MoreChemring Group, a specialist designer and manufacturer for the aerospace, defence and security industries, that was forced to engage with shareholders last year following a high level of dissent at its AGM over its remuneration practices may still not have done enough to meet investor concerns. Last year there was a large 48.02% vote against its […]
Read MoreLeading 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. The report identifies the S&P 500 CEOs which its believes are the 100 most overpaid […]
Read MoreProviding a simple and fair approach for remuneration committees trying to meet the challenge of getting executive pay right is the aim of a board briefing paper recently published by the Institute of Business Ethics (IBE). The IBE said the paper, Fair or Unfair? Getting to grips with executive pay, offered both practical advice on how remuneration […]
Read MoreThe founder of the Easy group of companies, Sir Stelios Haji-Ioannou, used his 49% stake in easyHotel, to vote against the company’s directors’ remuneration report leading to a majority opposing the resolution to approve the report at its recent AGM. Votes on the other resolutions were withheld. Haji-Ioannou is the largest shareholder in the Aim-listed company. A statement from […]
Read MoreBy the first Tuesday of 2016 (5th January) the UK’s top bosses made more money in 2016 than the average UK worker earns in an entire year, according to think tank, The High Pay Centre. FTSE 100 chief executives are paid an average £4.96 million a year according to the government’s ‘single figure’ measure compared to the UK full-time […]
Read More