Our views

More action needed to get companies to stop ignoring shareholders

Ashley Hamilton Claxton, Corporate Governance Manager

10 May 2017

We remain concerned that companies are ignoring shareholders when it comes to executive pay. We agree with the Institute of Directors (IoD) that more should be done to encourage companies to take shareholder votes seriously, including requiring companies to hold binding pay votes if they fail to receive significant support from shareholders. This is a more sensible alternative to the suggestion that we hold binding votes on pay each year, which we would consider to be both heavy-handed and too onerous on companies and investors.

The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.