Investment manager warns boards it will vote down the reappointment of nomination committee chairmen if they fail on boardroom diversity, while it will oppose pay policies that fail to meet its standards.
Hermes Investment Management has served notice on company boards that it will get tough on executive pay policies and boardroom diversity.
Hans Christoph Hirt, co-head of Hermes EOS, the body that handles engagement for the investment manager, said that Hermes would vote against the re-election of nomination committee chairmen in FTSE 100 companies that fail to achieve 25% representation for women on boards. .
He also said that Hermes will vote against pay policies that result in "overly complex" pay structures.
Writing in The Telegraph, Hirt sent a clear message to boardrooms to review pay policies and improve on diversity.
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