UK - Directors' pay will be the dominant topic at annual general meetings with shareholders demanding greater transparency of disclosure, Pensions Investment Research Consultants claims.
PIRC’s 2004 voting guidelines include updated views of corporate governance best practice and highlight areas which are likely to cause concern among investors.
Separation of powers of chairman and chief executives, sufficient weight of independent directors on the board and clearer disclosure of directors’ pay are expected to dominate this year’s AGM season.
Rewards for failure are also expected to top the agenda for shareholders with pension contributions, compensation terms and discretionary payments remaining “problematic”.
PIRC managing director Alan MacDougall said the guidelines traditionally anticipated industry developments and the market was continuing to “play catch-up” with earlier PIRC recommendations.
He said: “Disclosure about the directors and board is critical in enabling shareholders to form a proper judgement.”
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