Asset Management

Investors tell companies: curb excessive pay or expect more revolts

Trade body for fund managers has strengthened guidelines to appease public concern that companies are ignoring shareholder revolts over executive pay

Stop digging: Fund managers warn companies under fire over excessive pay - such as housebuilder Persimmon this year - to shape up
Stop digging: Fund managers warn companies under fire over excessive pay - such as housebuilder Persimmon this year - to shape up Photo: Getty Images

The Investment Association, the trade body for UK fund managers, has toughened up its remuneration guidelines in response to investor concerns that companies are ignoring their voting revolts against excessive executive pay packages.

In a statement released on November 22, Andrew Ninian, director of stewardship and corporate governance at the trade body, said that if companies do not embrace their strengthened guidelines “they should brace themselves for more shareholder revolts in 2019”.

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