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Royal Mail Remuneration

Post Date: July 25, 2018

I always thought that being a Chief Executive and being paid millions was a 24/7 job. I am amazed the Royal Mail could not recruit somebody from the millions of people who live in the UK. I am very angry that the details of Mr Back's £5.8million payout were buried in note 26 on page 144 of the company's annual report and not explained in the first paragraph of the Remuneration Committee Chair's statement. Hiding the pay of the new Chief ...

Gavin Darby dodges a bullet at Premier Foods AGM

Post Date: July 19, 2018

At the Premier Foods AGM the CEO Gavin Darby survived the "decapitation" attempt with 59% of the votes for his re-election vs 41% against. But its clear that the activist Oasis is not going away any time soon and so the debate about accelerating the reduction of debt with a chosen divestment or two rumbles on. The board are making conciliatory noises and continue to talk to those who attempted the decapitation: "Over recent weeks we have had discussions with a substantial ...

Who Owns IQE? Nominees And Shareholder Rights. IQE Short update

Post Date: July 16, 2018

IQE is one of the most shorted shares on the stock market, so it is quite important to know who owns the shares and who is short. However, individual shareholders' rights are lost via the nominee system. IQE reporting is an example. Hargreaves Lansdown, Interactive Investor and Barclays own 6.5%, 4% and 4% respectively of IQE (i.e. 15% in total), according to Cannacord Genuity, who provide the data for the IQE annual report, which states: Substantial interests in shares As at 28 February ...

UK Corporate Governance Code and new Companies (Miscellaneous Reporting) Regulations 2018

Post Date: July 16, 2018

On July 16th, 2018 the FRC published its latest revision of the UK Corporate Governance Code, which is in my view shorter, simpler and better. The code can be read here: https://www.frc.org.uk/getattachment/88bd8c45-50ea-4841-95b0-d2f4f48069a2/2018-UK-Corporate-Governance-Code-FINAL.PDF A summary of the main changes is here https://www.frc.org.uk/getattachment/524d4f4b-62df-4c76-926a-66e223ca0893/Key-highlights-of-the-Code.pdf The FRC have also published a report on their consultation about the Code which explains the changes and the arguments for and against specific changes https://www.frc.org.uk/getattachment/90797f4b-37a1-463e-937f-5cfb14dbdcc4/2018-UK-Corporate-Governance-Code-Feedback-Statement-July-2018.pdf The changes to the Code complement the changes announced by Government in June 2018 to the Companies (Miscellaneous Reporting) ...

FRC Enforcement Video

Post Date: July 14, 2018

The FRC is working hard to improve its transparency. Some would say they are not working hard enough and need a much more fundamental review. Recently there has been a marked increase in the number and level of fines they have levied on audit firms and audit partners, which we regard as positive On 12 July 2018, the FRC issued a News Alert about FRC executive Claudia Mortimore discussing the FRC’s enforcement process. In the video clip, Claudia Mortimore discusses how the team approaches ...