The trade body for the UK asset management industry revealed on Thursday that it was in the process of writing to some of the nation’s biggest businesses, which have been on the receiving end of shareholder rebellions over resolutions like executive pay.
Out of the 638 FTSE All-Share firms, the IA has initially contacted 100 firms, demanding an explanation on how they plan to address recent shareholder dissent.
The companies in question have all seen at least 20% of shareholders oppose resolutions at their annual general meetings in 2017.
Companies which appear on the register will be given an opportunity to explain how they have tackled shareholder concerns before the list goes public later this year.
This explanation will be accessible via the public register along with data on the result of the shareholder vote, the AGM results and a description of the resolution.
Academic publisher Pearson, a favourite holding of Nick Train, and pharma giant AstraZeneca, currently the largest holding in Neil Woodford’s £9bn equity income fund, are slated to be among the firms that will be named and shamed in the register, Sky News reported on Wednesday.
Luxury retailer Burberry, FTSE 250 housebuilder Crest Nicholson and Entertainment One are also reportedly included in the line-up of firms.
Chris Cummings, CEO of the IA, said the register was an important tool in ensuring businesses are being held accountable for their actions and recognising shareholder dissent.
“Shining a light on how companies are addressing shareholder concerns is key to holding businesses to account. The public register, which for the first time will bring together information on shareholder voting with responses from companies, will encourage greater accountability and ultimately change company behaviour.
“We look forward to seeing company’s public responses on the actions they have taken to address the shareholder concern since their meetings before the public register goes live at the end of the year.”
