Practical Law Corporate publishes Annual Reporting and AGMs 2016: What's Market practice?

5th December 2016

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Practical Law Corporate has published a report on the key trends from the 2016 reporting and AGM season . The report includes:

  • Analysis by Black Sun Plc as to how FTSE 100 companies have responded to challenges and changes within the reporting landscape.
  • Insights by Equiniti Registrars on the UK's first electronic AGM which took place this year and the issues that needed to be considered to satisfy the statutory and regulatory requirements of conducting an AGM electronically.
  • Analysis of the resolutions proposed this year for the introduction, amendment or extension of incentive plans.

The report is based on a review of the notices of AGM and annual reports of 299 FTSE 350 premium equity commercial companies, summaries of which can be accessed from What's Market: AGMs: FTSE 350: 2016.

Key highlights from the report include:

  • As at 14 October 2016, 67 FTSE 100 companies had at least 25% female representation on their board. Of the 281 female directors on FTSE 100 boards, 32 held executive positions.
  • Overall compliance with the UK Corporate Governance Code has increased during the 2016 reporting season. The most frequent explanation of non-compliance with the Code relates to the balance of independent directors on the board (B.1.2).
  • 71% of the FTSE 350 companies required to include a viability statement in their annual report this year included the statement in the strategic report.
  • Of the 65 FTSE 350 companies that sought shareholder approval for the enhanced disapplication of pre-emption rights since 5 May 2016, 68% followed the Pre-emption Group's recommended template resolutions.
  • 55 FTSE 350 companies proposed a resolution to approve the directors' remuneration policy and all but one was approved by shareholders.
  • 47 FTSE 350 companies proposed a total of 60 new share schemes.

Since finalising this report, the Hampton-Alexander Review published their report on improving the gender balance in the leadership of FTSE companies.

The report also highlights some key areas for consideration by companies during 2017.

This article was written by the Corporate team at Practical Law. For more information about the report, please contact Amanda Cantwell at Practical Law.

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