Your Vote Counts: Why This AGM Season Was Revolutionary
Interactive Investor (07/30/21) Evans, Graeme
In one of the stormiest AGM seasons in living memory, companies found out exactly what investors thought about excessive pay during the pandemic. Research this month by Deloitte found 12% pf FTSE 100-listed boards attracted low votes of less than 80% in support of their remuneration reports, compared with 5% the year before. The reasons for the year's spate of low votes reflected concerns over executive pay salary being increased above the wider workforce rate, the scale of packages for newly-hired CEOS, and the use of discretion to deliver higher bonus payouts. The accountancy firm's vice chairman, Stephen Cahill, said, "Shareholders were clear at the outset of the pandemic that decisions on executive pay should reflect the wider workforce, investor and societal impact of the COVID-19 pandemic." This month's research by Deloitte also revealed how far the pandemic impacted boardroom pay packages in 2021, with one-third of executive directors receiving no annual bonus for 2020.
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