Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Investors to receive binding powers on pay

Investors to receive binding powers on pay

Investors are to be given a binding vote on executive pay and bank bonuses under plans being drawn up by senior European officials seeking to build on recent momentum behind shareholder activism.

In an interview with the Financial Times, EU commissioner Michael Barnier said investors should have the voting powers to curb ‘morally indefensible’ executive pay growth.

His comments follow a wave of shareholder rebellions against pay policies and performance at Barclays, Citigroup, AvivaAstraZeneca and Trinity Mirror.

‘I like that expression – the shareholder spring – or even a regulation spring, a rule-making spring,’ said Barnier, EU commissioner responsible for internal markets.

‘I’m very attentive to this movement which I see as very positive. It corresponds with what I have been doing for the last two years. We need to put responsibility and transparency everywhere.’

Barnier said he would support defined maximum bonus to salary ratio, as well as maximum ratio of pay between the top and bottom earners within a company.

He did not refer to a minimum threshold for shareholder support to pass the measures however. The proposals correspond to policies suggested by UK business secretary Vince Cable.    

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter