The most common causes of shareholder rebellions in 2019 were pay packages and director re-elections, with climate inaction another growing concern for investors.
Image: Trum Ronnarong/Shutterstock
Executive pay and reappointment of directors were the leading issues for shareholder dissent last year, according to new research.
Proxy advisers Minerva and the Pensions and Lifetime Savings Association (PLSA) say that more that a fifth of FTSE 350 companies were confronted with major shareholder dissent, defined as votes of more than 20% opposition, for at least one AGM proposal. That amounts to 68 companies and 126 resolutions in total.
A vote of 20% opposition is considered “significant”, according to the UK Corporate Governance Code. Minerva has argued that a more appropriate level for “significant” would be 10%.
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda
Things have improved since the "dog's breakfast" resulting from the first year of strategic reporting. But there are still big issues to grapple with to avoid reports growing longer while failing to add substance.
Register to receive free article views and resource downloads, plus all the latest news alerts straight to your inbox. Register