Multi-national corporations are changing their approach to executive remuneration as a result of the UK's "shareholder revolution", Mercer has said.
Business secretary Vince Cable has unveiled plans to give shareholders a binding vote on executive pay every three years.
Pension funds still have "clout" in UK equity markets, despite holding a dwindling proportion of UK shares compared with foreign investors and institutional asset managers, according to the National Association of Pension Funds.
A majority of 60% of WPP shareholders voted against chief executive Sir Martin Sorrell's £6.8m pay package yesterday, in an embarrassing defeat for the advertising agency's outspoken boss.
WPP is facing a bruising executive pay defeat at the hands of rebellious shareholders at its AGM on Wednesday.
HSBC has weathered this year's shareholder backlash against executive pay, with a lower vote against its remuneration package than last year.
HSBC will come under fire from shareholders at its AGM today in the latest rebellion against executive pay.
Shell could become the next victim of a widespread shareholder revolt against excessive executive pay in the UK.
The European Commission will move to give shareholders a binding vote on pay, according to Commissioner Michel Barnier.
The Queen's Speech will not spell out specific measures on executive pay.