Voting figures have recorded little dissent with institutional shareholders about boardroom pay. Despite recent regulation and headlines to the contrary earlier this year, there has been little unrest at the AGM’s of FTSE 100 and FTSE 250 companies about remuneration packages, Equiniti research has found.
The average percentage of votes cast in favour of remuneration reports for the FTSE 100 are above 90 per cent at 90.94 per cent, slightly below the previous two years. It is a similar picture with the FTSE 250, with an average 94.43 per cent of votes in favour. The research was compiled by Equiniti’s Registration Services and company secretarial teams and looked at developments and trends during the 2016 AGM season.
Stuart Ellen, Managing Director at Equiniti, said: “The idea that there was some sort of shareholder spring in the offing, as some were suggesting in early 2016, is simply not backed up by the figures.
However, a large number of companies will need to seek shareholder approval for remuneration policies as three years will have passed since the introduction of the binding vote and also in response to the Investment Association’s report on executive remuneration structures.
This means that in 2017 AGM season we expect to see a larger number of companies putting forward a remuneration policy report for approval, but on our evidence from 2016 there is little sign of any major revolts in the offing for 2017.
With a new Prime Minister, who is taking a keen interest in boardroom pay, we may see an increased focus on remuneration as the political agenda changes.”
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