Leaders of the £650bn pensions industry have criticised government ministers
for failing to introduce tough measures which could help shareholders curb the
rise of company directors’ pay.
The NAPF urged members at its annual conference to lobby the top 750
companies and persuade them to put their pay reports to a vote of shareholders.
Only 10 of the UK’s top 350 companies held a shareholder vote on directors’
pay structures last year, according to the association. In a letter to its
members, chairman of NAPF’s investment committee Alan Rubenstein backed a
recent demand by institutional investors for more accountability on pay.
A group of institutional investors led by Hermes, one of the UK’s largest
fund managers, have asked companies to put their remuneration reports to a vote
at their annual general meetings. Together this group owns more than 5 per cent
of the UK stock market.