Eleanor Kelly charts the rise of opposition to directors’ remuneration
Many company directors will have noted with a mixture of interest and trepidation the increase in the level of discontent over the issue of directors’ remuneration at many listed company annual general meetings this year.
PIRC report
The rise in shareholder opposition to directors’ pay was highlighted in a report published by shareholder advisory group Pensions Investment Research Consultants Ltd (PIRC) on voting trends across 287 companies in the first six months of 2011.
This revealed that in the year to the end of June 2011, the average vote against the directors’ remuneration report was 6.1%, and average abstentions were 3.14%. This reflects a 0.5% rise in opposition compared to the first six months of 2010 and a 2.8% rise since 2008. PIRC also reported that in 2008, 82.6% of reports were approved with less than 5% of shareholders voting against the resolution, compared to only 66% this year.
Cable & Wireless
One of most publicised cases of shareholder revolt against directors’
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