Any new corporate governance measures must add value
29 August 2017
Commenting, Mike Fox, Head of Sustainable Investments at Royal London Asset Management said:
“We welcome the attention that the Government has given to corporate governance issues and executive pay, however any new measures that are introduced need to add value to what is already in place. The current system does seems to be working: shareholders have become more proactive, the vast majority of companies have responded appropriately and this is the key reason why chief executive pay has fallen by almost 20% this year.
“We are pleased to see that the Government has introduced flexibility to get companies to increase diversity and representation in the boardroom, realising that employee representation is not a one-size-fits all solution. On the other hand, we don’t think that forcing listed companies to reveal the pay ratio between bosses and workers will be meaningful. It will show large discrepancies between sectors depending on the nature of the workforce and the results could easily be manipulated.”
RLAM manages £106 billion of assets, including over £20 billion of UK listed equities.
- ENDS –
Notes to Editors
- The figure for the fall in CEO pay is taken from Deloitte’s forthcoming report on FTSE 100 executive remuneration, which was previewed last week: https://www2.deloitte.com/uk/en/pages/press-releases/articles/ftse-100-ceos-see-pay-decrease.html
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About Royal London Asset Management (RLAM):
Established in 1988, Royal London Asset Management (RLAM) is one of the UK's leading fund management companies, providing investment management solutions to both wholesale and institutional clients such as not-for-profit organisations, local authorities and the insurance sector.
RLAM manages £106 billion of assets and employs 85 investment professionals. It invests in all major asset classes including UK and overseas equities, government bonds, investment grade and high yield corporate bonds, property and cash.
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