Vanguard

Why Institutions Cannot Control Pay

An interesting recent article in the Financial Times FTfm supplement helped to explain why pay is so out of control in public companies. In an interview with Rakhi Kumar of State Street Global Advisors, she made it plain what the problem is. State Street may not be a household name in the UK, but they are one of the world’s largest fund managers. Fourth in size behind only Blackrock, Vanguard and UBS according to Wikipedia. Last year State Street had more than ...

Vanguard backing shareholder committees

According to a report in the Financial Times this morning, Vanguard is to promote the idea of "shareholder liaison committees" to improve corporate governance. This is of particular significance because Vanguard is one of the largest investment groups in the world and overtook Pimco last year to become the second largest fund manager.  Vanguard primarily runs low cost index tracker funds and therefore has to hold all major companies. Indeed they are one of the largest holders of shares in many ...