AGMs of UK’s companies face significant shareholder dissent

Shareholders in the United Kingdom are more critical about the resolutions companies submit for approval during their AGMs, informed the Investment Association, the trade body that represent approximately 200 assets in the country, with 6.9 trillion pounds under management. Up to the end of July 2018, 237 resolutions faced significant shareholder dissent (over 20%) – a jump of 25% over the same period last year. The opposition to individual director re-election was also significant: from 38 in 2017 to 80 in 2018. The rise was particularly stark in the FTSE 250, where rebellions rose by more than 100% with 37 resolutions in 2018.
“FTSE 100 companies must do more to ensure the pay packages of their top team align with company performance and remain at levels that shareholders find acceptable,” said Chris Cummings, Chief Executive of the Investment Association. According to him, investors remain frustrated despite the overall decline in executive pay and are using their votes to convey the message.
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