Who are the rebels?
BEFORE yesterday only three FTSE 100 firms had seen their remuneration reports rejected in the nine years since shareholders gained the right to vote on such matters.
But the rebellion by Aviva shareholders shows the growing tendency for major institutional investors to take an interest in executive pay.
The identity of voters was secret, yet it is believed that a vast majority of UK shareholders voted against the package. Across all shareholders, over half either voted against or abstained.
Individual investors were the most vocal at yesterday’s AGM but major shareholder groups such as Pensions & Investment Research Consultants had already recommended its members vote against “excessive” pay.
“The difference this time is that more people are becoming as engaged and as vociferous and as active on this issue as we have been,” Tim Breedon, CEO of Legal & General Group, the biggest investor in the UK stock market, said yesterday. “The collective leverage is far greater. That’s got to be a good thing.”
Sly Bailey has led Trinity Mirror for eight years but has seen mounting anger over her £1.7m pay packet despite the falling share price. Investors such as Standard Life, Schroders, Legal & General and Aviva Investors were expected to vote against her package at next week’s AGM had she not stepped down.
The rebellion at UBS was led by ISS, an American advisory service that provides guidance to more than 1,300 firms and Ethos, a Swiss foundation that owns shares in the bank and advises other clients.
They were joined by F&C asset management and fund manager Hermes.