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%.
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