From Shareholder Spring to Shareholder Consultation

10 July 2014

Standard Life Investments, the global investment manager, believes that shareholder engagement in the UK is evolving, with more discussion on remuneration policies representing another step towards improved governance, stewardship and trust.  If 2013 was the year of responsibilities and regulation, 2014 has emerged as the year of consultation.

The 2014 UK AGM season featured the introduction of a binding shareholder vote on companies’ remuneration policies, representing a further significant development in the relationship between companies and their shareholders. The latest edition of Global Outlook looks back at the 2014 UK AGM season to assess whether the voting indicates any change in the behaviour of shareholders and companies and considers whether the new legislation, designed to strengthen shareholder rights over executive pay, have worked as intended.

Mike Everett, Director of Governance & Stewardship, Standard Life Investments, said:

Mike Everett

"The 2014 AGM season was another step on the journey towards improved governance, stewardship, engagement and trust in the companies to which savers and investors entrust their future.

"The new binding vote on pay has encouraged engagement by companies and we hope that this will continue in years to come on broader topics such as values and business practices, audit quality and succession planning."