Companies that have not sought changes to their remuneration policy since 2014 have been required to propose a resolution to renew approval of the policy at their 2017 AGM. This follows the introduction of a new disclosure and voting regime for directors’ remuneration for quoted companies, requiring companies to seek a binding vote from shareholders on their directors’ remuneration policy every three years and an annual advisory vote on the directors’ remuneration report.
Practical Law Corporate has therefore provided an analysis of voting trends for directors' remuneration from the 2016 AGM season and the 2017 AGM season to date.
The two major findings were:
- Only two companies (one FTSE 100 and one FTSE 250) have received insufficient votes for the resolution to approve the remuneration report to be passed; and
- All resolutions to approve the remuneration policy have been approved by shareholders so far this year.
Click here to read further analysis of the voting trends for directors' remuneration, including the number of substantial votes against the re-election of those directors who are chairs of remuneration committees.