Publisher's pay packet prompts voting action

The issue

Around the world, company remuneration polices are under scrutiny and investors may need to act to steer things in the right direction.

The issue

Around the world, company remuneration polices are under scrutiny and investors may need to act to steer things in the right direction.

Engagement type One-to-one

Our engagement

A UK publishing company called an extraordinary general meeting (EGM) to seek shareholder approval for amendments to the director remuneration policy to accommodate the incoming CEO’s pay package.

We met with the chairman and incoming CEO and discussed the proposal, and had a robust internal debate on the matter. This was then escalated to Fidelity’s Sustainable Investment Operating Committee for final arbitration as it was felt that our voting decision could have wide-ranging impacts.

The outcome

Ultimately, we concluded that it was important to uphold our principles and oppose the plan on the basis of its poor design. We voted against the remuneration policy amendments and communicated this to the company.