Practical Law Corporate has published a report on the key trends from the 2017 reporting and AGM season. The report includes:
- Insights from Margot James MP (Parliamentary Under Secretary of State at BEIS, Minister for Small Business, Consumers and Corporate Responsibility) on the government's governance reforms.
- An article by the Financial Reporting Council which provides some insight into the thinking behind its comprehensive review of the UK Corporate Governance Code, a consultation which was on 5 December 2017.
The report is based on a review of the notices of AGM and annual reports of 298 FTSE 350 premium equity commercial companies.
Key highlights from the report include:
- As of 13 October 2017, 70 FTSE 100 companies had at least 25% female representation on their board. 11% of the executive positions held across the FTSE 100 are held by women. 2% of FTSE 100 companies have a female chief executive.
- 63% of FTSE 350 companies have included, or made reference to, Brexit in one or more of their principal risks.
- 67% of FTSE 350 companies stated full compliance with the UK Corporate Governance Code compared to 59% in 2016.
- 74% of FTSE 350 companies sought an enhanced disapplication authority, a 12% increase compared to 2016.
- 73 FTSE 350 companies sought shareholder approval for the introduction, amendment or extension of the life of a share plan.
- Two companies failed to attain sufficient shareholder support for the annual remuneration report resolution to be passed. All resolutions to approve the remuneration policy have been passed. Three remuneration policy resolutions were withdrawn by companies prior to the AGM.
- The average percentage of votes received in favour of the annual remuneration report and remuneration policy resolutions so far this year is 92.8% and 93.7% respectively.
- 70 FTSE 350 companies have received a substantial vote against a resolution to approve the election or re-election of one or more directors.
The report also highlights some key areas for consideration by companies during 2018.
This article was written by the Corporate team at Practical Law. For more information about the report, please contact Amanda Cantwell at Practical Law.