TUC attacks funds on salaries

Remuneration is the topic most likely to stir up disagreement between company management and institutional investors, according to a study released today by the Trades Union Congress (TUC) today. However, the report also found bank remuneration was particularly strongly supported. Barclays led the field with 75 per cent of fund managers backing its remuneration. The TUC believes this shows fund managers are failing to maximise the return on their investments. “Shareholders are supposed to be the ultimate check on our corporate system, but too many fund managers are still failing to use the power of their investments to influence corporate behaviour,” said general secretary Brendan Barber. “The fact that bank remuneration reports received so much backing in the face of diminishing dividends and poor stock market performance is a clear sign institutional investors are not doing their job properly.”