Remuneration

Interesting FT Articles on Fund Performance , Nick Train and Executive Pay

There have been some very interesting articles in the FT in the last few days. On the 25th February John Authers discussed market timing and passive versus active management. He quoted consumer research group Dalbar who have compared active and passive funds. Although passive funds have beaten active funds in the long term, because of their lower costs, investors in active funds have received higher returns in the last 15 years. How can that be? It's because to quote: "Holders of ...

Press Release – Response to Green Paper on Corporate Governance

ShareSoc has today issued the following press release: How to fix the ills of the UK Corporate Governance scene? ShareSoc and UKSA have given their solutions in a response to the Government Green Paper on Corporate Governance Reform. We have emphasised that the following are the key issues: Engagement between shareholders and companies is not working. Shareholders are not exercising effective stewardship and control, and boards are failing to fulfil their fiduciary obligations to members. As a result, public trust in business is ...

Link Between Pay and Performance Is Negligible

A study commissioned and just published by the CFA Society gives a very good analysis of how the pay of public company directors bears little relationship to fundamental measures...

Shareholder Rights Directive Agreed – But It’s Still Defective

There has been agreement within the EU on the final form of the Shareholder Rights Directive. What follows is the press release issued by Better Finance (a body that represents individual investors across the EU and of which ShareSoc is a Member). PRESS RELEASE PRESIDENCY AND PARLIAMENT AGREE ON REVIEW OF SHAREHOLDERS RIGHTS DIRECTIVE: LIMITED IMPROVEMENTS FOR SHAREHOLDERS 14 December 2016 - On 9 December 2016 the EU presidency and the EU Parliament agreed on the final version of the new Shareholders ...

Berkeley Group Interims, and Pay

House builder Berkeley Group issued their Interim Results this morning (2/12/2016). It was generally positive about the future so the share price has perked up somewhat today. But the...

Remuneration Campaign

ShareSoc Director Cliff Weight has been leading a campaign to reform remuneration in public companies – something that is now of interest to Prime Minister Theresa May it seems...

More Power Requested for Ultimate Investors

ShareSoc has issued a press release noting our submission to the Parliament BIS Committee Inquiry into Corporate Governance. It requests more power for ultimate investors. Here is a brief summary of the contents (the press release includes a link to our full submission). We suggest that the goal should be to get more power back to the ultimate investors. This can be achieved by: - Ensuring that individual shareholders can exercise their rights, even if their shares are held in nominee accounts. - Providing ...

Pay and the Attitude of Institutional Investors

An article in the Financial Times on Friday (30/9/2016) focussed on the resistance of business to Theresa May's "responsible capitalism". Although the article acknowledged the need for change, for example in the area of director remuneration. Lots of practical problems were raised - for example how to select suitable worker representatives for boards in international companies. But the really revealing comment was this one from Paul Lee, Head of Corporate Governance at Aberdeen Asset Management. He was quoted as saying: "If ...

Corporate Governance Inquiry Launched in Parliament

The BIS Select Committee of MPs has launched an inquiry into corporate governance focussing on executive pay, directors duties, and the composition of boardrooms. That includes worker representation and gender balance in executive positions. It has been prompted by the recent comments from the Prime Minister and the Committees recent inquiries into BHS and Sports Direct where major failings were revealed in the way those businesses were run. The terms of reference for this inquiry are very broad - see this web ...

Please Vote Against Berkeley Remuneration

ShareSoc has advised investors to vote against the Remuneration Report at Berkeley Group. Is a total pay figure of £21 million in 2015/16 for Executive Chairman Tony Pidgley justifiable on any grounds at all? It has surely arisen as the result of an over generous LTIP scheme which shareholders voted for without realising the possible consequences. LTIP schemes have been one source of the ever growing pay of public company directors and if we are to reign in pay levels we ...