Monday 24 May 2021 2:06 pm

Hochschild Mining braces for investor revolt as proxy advisers continue to flex their muscles

Aston Martin Lagonda and Hochschild Mining are the latest companies to face shareholder rebellions over pay and diversity as activist investors continue to flex their muscles. 

Hochschild is bracing for a rebellion after shareholder advisory service Glass Lewis told clients to reject its pay report later this week, the Times reported. It’s said to be related to a death last year at the Pallancata mine in Peru. 

Chief executive Ignacio Bustamante was paid $1.9m last year, and the portion of the annual bonus linked to health and safety made a partial payout. Glass Lewis has said this should have been cut to zero because it “risks sending a mixed message to the executives as to the company’s overarching safety goal”. 

Hochschild Mining declined to comment. 

Last week it emerged Aston Martin was facing an investor revolt for handing bonuses to its chief executive after accessing £13m in emergency funds during the pandemic.Investor group ISS criticised the company for paying chief executive Tobias Moers a £142,000 last year. 

It is also facing criticism for its gender disparity with the Times reporting its executive chairman Lawrence Stroll could face opposition to his reappointment in Aston Martin’s annual meeting on Tuesday. 

It comes amid a wave of activist investors bolstering their ESG credentials with campaigns focused on corporate governance and ESG concerns. 

Oil major Shell has been under pressure from its shareholders, including Legal & General Investment Management which today voted against its climate strategy. 

It came after proxy advisory firm PIRC said the company’s strategy to cut emissions “does not seem to have a clear plan for the competitive aspects of the energy transition.”

PIRC, which advises investors managing over £1.5 trillion, has also been embroiled in a battle for Exxon’s boardroom. The advisor has recommended shareholders vote in favour of four hedge fund board nominees and criticised existing directors for a lack of “credible plan” as energy markets shift to cleaner fuels.