Fifth of FTSE firms to feature on register of investor revolts
MORE than a fifth of FTSE All-share companies including JD Sports, Sky Group and Morrisons will today appear on a register unveiling which businesses have faced major investor revolts this year.
The Investment Association (IA), the trade body for Britain’s £7 trillion funds industry, will publish the world’s first ever public register naming all the companies where at least 20pc of shareholders opposed one or more of the board’s resolutions this year.
The list – which names 143 businesses overall – shows that almost four out of 10 (38pc) revolts at annual general meetings this year have been related to pay.
Thomas Cook, for example, scrapped a bonus scheme this year after more than a third of investors rejected its plan.
Bradford-based Morrisons also suffered an investor backlash over its plans to bump the pay of chief executive David Potts. Other names expected to appear on the list include JD Sports, Sky Group, William Hill and Ladbrokes Coral.
While pay was the main reason for a shareholder kickback at meetings held between January and Dec 15, the reelection of company directors came a close second with one in three (32pc) resolutions on the register due to director issues, the IA said.
The register will also include responses from some of the firms named, the aim being to publicly track if and how firms are responding to shareholder concerns. “Today is another significant step in bringing to life the important role our members play,” said Chris Cummings, the IA boss.
“The data reveals the true scale of investor concern and shows shareholders flexing their muscles by exercising their votes.”
The move comes amid growing interest from the Government to clamp down on boardroom excess.
Shareholders will also today vote on whether Donald Brydon, the London Stock Exchange’s chairman, should stay in the role following a bitter public campaign with a major investor.