Investors in Europe have turned their attention to voting against remuneration policies as a means of lodging their displeasure at pay levels across the continent, according to new research.

Shareholder advisory firm Georgeson says pay “policies” are attracting investor displeasure with the proportion of contested policies (those seeing votes of 10% or more against) increasing to 37.9% in 2025, compared with 30.7% the previous year.

Georgeson observes the increase in opposition “creates challenges for future executive pay structures”.

‘Disruptive approach’

Cas Sydorowitz, Georgeson chief executive, says: “Investors appear increasingly willing to challenge executive pay through a more confrontational and disruptive approach by opposing companies’ binding resolutions binding remuneration policy resolution frameworks.

“By voting ‘against’ such resolutions, investors directly challenge future executive compensation structures, which can also include long-term incentive plans.”

Georgeson looked at results from 2025 AGMs across nine jurisdictions, among them the UK, Ireland, Spain, Italy, the Netherlands, Germany, France, Switzerland and Belgium.

Votes against remuneration reports also rose, year on year, from 29.9% to 31.1% in 2025.

Meanwhile, the proportion of contested director elections dropped slightly from 12.8% to 12.2%. Opposition to share issuance has jumped from 11.3% last year to 17.1% this year.

In July, consultancy firm Indigo said that shareholder revolts against remuneration reports in the FTSE 100 were increasing in number, with 11 out of the 56 companies, compared with five at the same stage last year.

The votes come at a time when senior City figures have been trying to persuade boards that higher pay levels  for listed company CEOs if companies are to compete for the top leaders.

In June, London Stock Exchange chief executive Julia Hoggett boasted the rise in pay was part of a “roll-call of progress” in the City she dubbed “remarkable” and ”unmatched”.

Hoggett launched her efforts to talk up pay levels back in 2023 with a blog that prompted widespread media coverage.

IA guidance

Observers believe a significant influence on rising pay levels has been revised guidance from the Investment Association which enabled boards to ease the restraints on rewards.

Last week, a think tank, the High Pay Centre, launched a campaign to introduce a maximum pay ratio of 10:1 for CEO and worker pay. “We believe that building visible public backing is essential if we are to shift the debate around fair pay and inequality,” the think tank said.

Pay remains a sticking point and Georgeson’s research shows investors changing tack to express their concerns. Not everyone was a backer of higher than usual pay rises for CEOs. Investors and boards appear in a period of friction over pay.