US tech company Snap came under further pressure yesterday when UK investment managers urged leading global indices to bar companies with controversial non-voting shares.
The Investment Association (IA), whose 200 members include the likes of Aberdeen Asset Management, Henderson and Legal & General, has written to FTSE Russell, MSCI Global and S&P Dow Jones setting out its argument.
The letters outline that IA members “are not in favour of companies with differential share ownership structures, where companies offer limited or enhanced voting, or other ownership rights to different classes of shareholders, being included in the indices”.
“Investors of all shapes and sizes need to have a voice in how the companies they own are run,” said Andrew Ninian, director of stewardship and corporate governance at the IA.
“Our members see the governance of investee companies as an integral part of the investment process and believe that only well governed companies will protect and enhance shareholder value over the long-term.
“We have written to the indices to outline our members’ support for proportionate ownership structures that mean that a company’s management must remain accountable to all shareholders, and to ensure that the recent example of the Snap listing does not set any market precedent.”