UK - Institutional investors are very similar in the way they question companies on corporate governance and socially responsible investment policies, a new report shows.
The study by Hermes Pensions Management also found that a majority recommend that remuneration committees should consist exclusively of non-executive directors. The report – 'The institutional investor corporate governance and SRI policies' – found all of the 20 institutions surveyed had a preference for the roles of chairman and chief executive to be kept separate.
Hermes director of corporate governance Michelle Edkins said: “There is a fair degree of commonality. Variation comes in the application of policy.” The report also found that 70% of firms’ policy statements regarding non-executive directors were less prescriptive than the Combined Code industry standard. The Combined Code states that the ratio of non-executive directors compared to executive directors should be no less than one third and that the majority of non-executive directors should be independent.
The report found that 13 of those surveyed recommended that remuneration committees should consist exclusively of non-executive directors. But three companies suggest that when independent advisers are appointed, these should decide on remuneration.
By Paul Sanderson
An innovative funding structure has been agreed for Croydon Pension Fund. However, there are some concerns about the arrangement. Stephanie Baxter reports
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In this week's Pensions Buzz, we want to know whether bosses should have to pay into the same staff DB scheme as their workers rather than their own executive pension fund.