The 2025 AGM season has seen a huge uptick in shareholder revolts, most of them about executive pay, demonstrating that many investors remain concerned about remuneration levels, according to new research. This is in spite of claims that the UK pay debate has seen a “reset” over the past year.

Consultancy Indigo says its figures, as of 5 December, show that shareholder revolts—votes of 20% or more against a company resolution—have surged this year in the FTSE 100 by 88%.

Of the 15 revolts that took place, 10 were about pay policies or reports—double the figure of 2024.

Bernadette Young, co-founder and director of Indigo, says the increase in shareholder revolts indicates a “continued rise” in investor engagement with boardroom members.

“But, more than this, the doubling of shareholder revolts against executive pay deals has been a defining trend of the year,” she added.

“There has been much talk of how higher pay across the pond has tempted high performing executives away from UK shores, but shareholders have shown little sign of changing their attitudes.”

Wintering the discontent

In November, London Stock Exchange chief executive Dame Julia Hoggett told a Financial Times conference that remuneration committee chairs were willing to follow counterparts in offering their CEOs more pay and were prepared to suffer the discontent of investors. “If one of your children is on the naughty step, it is a naughty step, but if all your children are on the naughty step it is a play date,” the FT reported.

However, it was Hoggett who in 2023 reignited the executive pay debate with a blog suggesting higher pay levels were a competitiveness issue for UK companies if they were to attract the best talent.

Since then, the argument has simmered away in the background. Hoggett’s argument did not win over everyone.

One think tank labelled her argument “tone deaf” and called for “maximum pay” levels to be set.

Meanwhile, the City knew as early as June this year that there was significant opposition to many remuneration reports in the FTSE 350, as companies began “challenging the status quo”. This followed a year in which pay proposals were more conservative.

Among the companies this year to see shareholders vote in large numbers against pay arrangements were Unilever (27%), the London Stock Exchange Group (30%), Taylor Wimpey (26%) and the InterContinental Hotel Group (30%).

Babcock International even reversed pay plans after votes at the company AGM in September.

Pay will continue to be a hot topic and City figures will maintain their argument that it is necessary for UK competitiveness. However, the shareholder revolts show many investors are not convinced.