– The National Association of Pension Funds (NAPF) has written to FTSE 350 chairmen warning of a repeat of last year’s Shareholder Spring unless they take a robust stance on boardroom pay. It said companies should create a stronger link between executive rewards and performance and set out guidelines it wants to see reflected in pay policies in 2013. It also criticised the use of peer group benchmarking, saying this practice has contributed to the escalation of boardroom pay.
– A group of more than 30 major European institutional investors with more than €2trn under management, including the Universities Superannuation Scheme and Legal & General Investment Management, has released a paper which sets out the long-term investor view of weaknesses in the audit sector and proposals for steps to restore trust. These include improved transparency; audit firm rotation at least every 15 years; and limits to non-audit services.
– Standard Life Investments (SLI) has published its inaugural Annual Review of Governance & Stewardship detailing how it fulfils its engagement and voting responsibilities. The review includes details of companies where SLI has been influential in achieving change, for example Barclays, Xstrata and 3i Group and highlights voting at Aviva, AstraZeneca and Mitchells & Butlers.
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