UK - Three of the UK's major voting issues voices have approved Scottish & Newcastle's director remuneration report.
Pensions Investment Research Consultants (PIRC), the National Association of Pension Funds (NAPF) and Institutional Shareholder Services (ISS) have advised shareholders to vote in favour of S&N’s director remuneration report when it is tabled at the company’s AGM next Thursday.
However, PIRC and ISS have welcomed the decision to put the remuneration report to the vote but have expressed concerns about what they call insufficiently challenging performance targets for long term incentive schemes.
The two bodies said they did not consider S&N’s earnings per share (EPS) growth of 3% to be challenging under the executive share option scheme, the main outstanding long term incentive scheme.
PIRC said it was informed by S&N that it operates in a mature industry and it would be extremely difficult to achieve the levels of EPS growth which might be achievable in other industries.
Meanwhile, the NAPF has said that the EPS growth of 3% is common and is accepted by most institutional investors including the Association of British Insurers.
By Janet Du Chenne
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers