New research shows shareholders tend to approve remuneration policies while rejecting subsequent remuneration reports, suggesting a lack of clarity on how such policies work.
Shareholders may not understand executive remuneration policies when they are presented for approval, according to a new report.
The annual research from the High Pay Centre, a campaign group, and the CIPD, a chartered institute for HR professionals, concludes that voting patterns may indicate that remuneration policies are so complex that shareholders may not fully understand what they may lead to.
The report found that no remuneration policy for a FTSE 100 company has been defeated at an AGM since shareholder voting was introduced in 2013. The mean level of dissent for policies in the 2017–18 season was just 6%. The level for remune
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