Shareholder concern in the UK over director accountability is on the increase as pay remains high on the agenda at the midway point of the 2018 annual general meeting (AGM) season.
That was the key finding of new analysis by the Investment Association, the trade body that represents UK investment managers.
The analysis shows that, for those FTSE all-share companies that had held their 2018 AGM by June 8, the total number of resolutions where more than 20% of shareholders voted against executive pay recommendations was 140.
The number of individual director-related resolutions where more than 20% of the votes were against rose from 27 in 2017 to 54 in 2018.
Andrew Ninian, director of stewardship and corporate governance at the Investment Association, said: “An emerging trend midway through this year’s AGM season is the increase in directors receiving high votes against their re-election.
“Directors are getting a very clear message from shareholders that they will be held accountable for their actions.”
©2018 funds europe
