International Airlines Group (IAG), formed from the merger of British Airways and Iberia, could be heading for a showdown with its investors after a leading shareholder advisory group recommended they oppose the group's annual report.
Pirc notes that IAG is not putting any directors up for election at its annual general meeting on 20 June, a move it points out contravenes the UK combined code of corporate governance conduct.
"The company states that it has decided not to apply the principle of UK Corporate Governance Code, which recommends the annual election of FTSE 350 directors.
"It states that this decision was taken by the two predecessor companies," Pirc said.
"Instead, shareholders are given a vote to discharge the board. Given that the board is not putting any directors up for re-election, for reasons which are not explained, Pirc has recommended a vote against."
In a statement, IAG said: "This decision was taken to provide board stability and continuity in the group's early years... An explanation was set out in our merger prospectus and latest annual report."Reuse content