UK - The National Association of Pension Funds has urged members to vote against the re-election of the chairman of luxury goods company Burberry Group.
The NAPF says Burberry has failed to meet corporate governance best practice, and recommends shareholders oppose the re-election of chairman John Peace at the company’s annual meeting on Tuesday.
Peace, who is also on Burberry’s remuneration committee, is not considered to be independent as he is also chief executive of GUS – the company’s controlling shareholder.
An NAPF spokesman said: “The company states that it considers it appropriate to have a director representing GUS on the remuneration committee. However, this is not in line with the new combined code and, while we understand the company’s view, it is not best practice.”
The NAPF is also recommending members vote against the remuneration report because of a new executive share scheme. Burberry wants to give executives two shares for every new share they purchase in the company.The NAPF claims the incentive plan is not sufficiently linked to performance.
Proxy voting agency Manifest is also opposed to the re-election of Peace.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.