UK - Pension schemes and employers are split over government plans which will force companies to put executive pay deals to shareholders.
The Confederation of British Industry claims the directive – which has been issued by the Department of Trade and Industry and takes effect at the end of current parliamentary session – adds another unnecessary layer of legislation.
The directive will allow shareholders to vote on remuneration reports at company annual general meetings.
CBI spokesman Richard Dodd said the mandatory submission runs the risk of AGMs becoming unfocussed.
He added: “There is no need to give a separate vote on the remuneration package or policy. Shareholders have lots of ways to make their views clear. For example, they can consult in private with the board or at the AGM itself.”
The NAPF backs the directive – although it agrees that it adds to the “legislation burden”. It also believes it would have been far simpler to amend the existing Combined Code best practice guidelines.
The Institute of Directors said the government fell short in its directive as under the legislation, companies are not required to follow the outcome of executive pay votes.
The directive follows controversy surrounding high-profile company executives receiving excessive pay and bonuses despite shareholder disapproval.
The proposed cold-calling ban may be ineffective if a collaborative regulatory approach between the UK and the European Union (EU) is not maintained post-Brexit, the Pensions Management Institute (PMI) has warned.
Some 56% of defined contribution (DC) asset managers do not believe they will have transaction cost information in time for pension funds' March year-end statements, according to Lane Clark & Peacock (LCP) research.
NEST has appointed Clive Elphick, Martin Turner, Mutaz Qubbaj and Chris Hitchen as trustee members of its reshaped board.
Most people want to avoid investing in projects that contribute to climate change, and would consider moving to another less-exposed provider, according to a survey commissioned by ClientEarth.