End of shareholder revolt register will help UK firms bury pay controversies'

"UK-listed companies will be able to bury controversies over executive pay for the first time in eight years, a thinktank has warned, after the Labour government shut down a public tracker meant to curb abuses and excess in the boardroom. The public register was launched under the Tory prime minister Theresa May in 2017 to name and shame companies hit by shareholder revolts at their annual general meetings (AGMs). That included rebellions over issues such as excessive bonuses or salary increases for top earning bosses."

"However, the Treasury under the chancellor, Rachel Reeves instructed the Investment Association (IA), the UK asset management trade body that maintained the register, to shut it down this autumn as part of a wider regulation action plan to increase economic growth by cutting red tape for businesses. The closure of the public log follows lobbying campaign by companies including the London Stock Exchange, whose bosses claim bad publicity over executive pay is harming the City's competitiveness and deterring UK listings."

"This would make it more likely that significant cases of shareholder dissent on issues of pay, governance and wider strategy will go unnoticed. About 26% of FTSE 100 companies have had a shareholder rebellion against executive pay over the past three years. Dissent is considered a shareholder rebellion if 20% or more of the vote is against a specific resolution."

The Treasury instructed the Investment Association to close a public register that tracked shareholder revolts over executive pay, ending a log launched in 2017. The closure is part of a regulatory action plan aimed at boosting economic growth by cutting red tape, and follows lobbying by companies including the London Stock Exchange which argued bad publicity deters listings. The High Pay Centre warns the shutdown will reduce transparency, allow companies to dismiss investor concerns, and make it likelier that significant dissent on pay, governance and strategy will go unnoticed. About 26% of FTSE 100 firms faced pay rebellions in the past three years.

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