Legal & General takes tough stance on executive pay in UK companies in annual governance report

Shruti Tripathi Chopra
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LGIM released its 2016 corporate governance report today (Source: Getty)

Legal & General Investment Management (LGIM), one of UK's biggest asset managers, voted against at least one resolution at 23 per cent of UK companies in 2016, up from 18 per cent in 2015.

The firm's 2016 corporate governance report, released today, showed that globally LGIM voted against at least one resolution at 56 per cent of companies it has a stake in compared to 52 per cent in 2015.

In 2016 LGIM voted against 118 pay resolutions in the UK and against 14 per cent of companies on just pay alone.

Read more: Revealed: The highest and lowest chief exec pay ratios on the FTSE 350

Sacha Sadan, director of corporate governance at LGIM, said: “Active ownership and engagement continues to drive our approach to corporate governance. The strengthening of our voting policies on remuneration, board composition and diversity in 2016 reflects how seriously we take our responsibility to act as stewards and influence change.

“Consistent and ongoing dialogue with companies is fundamental to our active ownership approach, and we engage with companies throughout the year to effectively influence and change behaviours. The corporate governance landscape is continuing to evolve, and our clients, companies, and regulators are increasingly recognising the role LGIM can play as one of the largest global investors.”

Read more: Crest Nicholson "disappointed" as investors vote against executive pay

Star City fund manager Helena Morrissey is set to join Legal & General Investment Management as its head of personal investing for its UK business, it was revealed earlier this year.

Morrissey was chief executive of Newton Investment Management for 15 years, before stepping down last August. She is also chair of the Investment Association and founded the 30% Club that champions gender balance and diversity on boards.

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