Over a fifth of the UK’s public-listed firms experienced significant shareholder rebellions this year, according to the UK’s Investment Association, which represents institutional investors.
The association has put 22% of the 640 firms on the FTSE All-Share index on a new public register of firms that in 2017 had shareholder meetings where at least one resolution was withdrawn or received 20% of dissenting votes.
According to the association, the new register will help to increase transparency, accountability and scrutiny of listed companies by shareholders, media and the wider public.
Pay-related issues and board elections topped the list of shareholder concerns, with almost four out of ten (38%) resolutions being due to high votes against pay-related resolutions.
Chris Cummings, chief executive of the Investment Association, said that the new register “reveals the true scale of investor concern and shows shareholders flexing their muscles by exercising their votes”.
“One third of companies on the public register have responded, by publishing a statement on how they are addressing their shareholders’ concerns,” he said. “We hope more will follow as these statements matter.”
©2017 funds europe
