Short positions... revolt over pay at Abrdn

⬛ Adviser Glass Lewis (GL) is urging Abrdn’s shareholders to vote against the asset management group’s pay report at the annual meeting on 24 April, says the Financial Times. Glass Lewis objects to new chief financial officer Jason Windsor’s £675,000 salary. It notes that it is 25% higher than his predecessor’s, and wants a “more thorough rationale” for the figure. Windsor’s salary is the same as for his previous job. Abrdn, like many asset managers, is under pressure from customers withdrawing money from funds run by stockpickers in favour of cheaper index-tracking products.

It said Windsor’s pay was necessary to “attract the required skills and expertise”. Institutional Shareholder Services, another shareholders’ adviser, is recommending investors vote in favour of Abrdn’s proposals. CEO Stephen Bird’s pay increased to £2.1m last year from £1.7m in 2022. UK boards are boosting executives’ pay in order to compete better with Wall Street. ⬛ The ethics adviser to Norway’s $1.6trn sovereign wealth fund is considering whether to recommend divesting a multibillion-dollar stake in miner Rio Tinto, says The Wall Street Journal. It is concerned about deforestation from Rio’s operations in the Brazilian Amazon. Norges Bank, the operator of the world’s largest sovereign wealth fund, has followed every recommendation of the independent Council on Ethics, which scrutinises its investments. Rio is in talks with the council, but no final decision has been made. Norges has increased divestments related to environmental, social and corporate governance factors in recent years. Being blacklisted by the fund would be a blow to the world’s second-largest miner. Norges is one of Rio’s largest shareholders, with a 2.24% stake worth $2.7bn.