Revealed: How L&G fought to nail the fat cats

 

Legal & General Investment Management held 15 meetings with Xstrata and Glencore last year to discuss concerns about their £56bn merger, it has emerged.

The fund manager, a top 10 investor in each company, said it had "consistently disagreed" with the remuneration packages both parties hoped to hand to executives, including Xstrata's chief executive Mick Davis, who was set to pick up about £30m at one stage.

"LGIM was pleased to see the deal complete without the retention packages," the investor revealed in its 2012 Corporate Governance Report. "Other shareholders went public on their stance whilst we kept our meetings with the company and voting intentions private as we felt, that in this instance, keeping discussions confidential was a more constructive approach."

The report, published yesterday, gives a rare insight into the workings of one of Britain's most private fund managers, which last year voted at 591 annual general meetings across the country, casting 9,475 votes.

In terms of its other highlights, L&G said it held 11 private meetings with Barclays to discuss the "disconnect between pay and long-term performance" at the troubled banking group.

The company said it voted against the re-election of Alison Carnwath as chairman of Barclays' remuneration committee before she quit, and played leading role in the subsequent appointment of the bank's new chairman and chief executive. L&G controls about 3.5 per cent of Barclays.

It also said it voted against the re-election of James Murdoch as chairman of BSkyB before he stood down and the £17.6m pay package handed to WPP chief executive Sir Martin Sorrell.

Last year, The Independent revealed that L&G was the leader of the shareholder spring, which saw an unprecedented number of companies held to account for poor practice on issues such as bosses' pay. Between April and June, L&G, which holds about 4 per cent of the UK stock market, opposed management resolutions at 76 companies, more than half the already high total of 125 "no" votes for the whole of 2011.

It even voted against other insurers, including Aviva, whose chief executive Andrew Moss quit in May as a casualty of the shareholder spring. By June, the fund manager's corporate governance unit was opposing management resolutions at a third of annual meetings.

"As individuals, most of us lack the scale to bring about change. As one of the UK's largest asset managers, we have a responsibility to exercise client voting rights and influence change efficiently and effectively," L&G added in the report.

PROMOTED VIDEO
Sport
Ojo Onaolapo celebrates winning the bronze medal
commonwealth games
Arts and Entertainment
Rock band Led Zeppelin in the early 1970s
musicLed Zeppelin to release alternative Stairway To Heaven after 43 years
News
i100
News
Prince Harry is clearing enjoying the Commonwealth Games judging by this photo
people(a real one this time)
Extras
indybest
News
Richard Norris in GQ
mediaGQ features photo shoot with man who underwent full face transplant
Sport
Lionel Messi looks on at the end of the final
football
News
ebookA unique anthology of reporting and analysis of a crucial period of history
News
Gardai wait for the naked man, who had gone for a skinny dip in Belfast Lough
newsTwo skinny dippers threatened with inclusion on sex offenders’ register as naturists criminalised
News
Your picture is everything in the shallow world of online dating
i100
News
The Swiss Re tower or 'Gherkin' was at one time the UK’s most expensive office when German bank IVG and private equity firm Evans Randall bought it
news
Life and Style
Attractive women on the Internet: not a myth
techOkCupid boasts about Facebook-style experiments on users
Sport
Van Gaal said that his challenge in taking over Bobby Robson's Barcelona team in 1993 has been easier than the task of resurrecting the current United side
football
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

HR Business Partner - Banking Finance - Brentwood - £45K

£45000 per annum + Benefits: Ashdown Group: ** HR Business Partner - Senior H...

PA / Team Secretary - Wimbledon

£28000 - £32000 per annum + Benefits: Ashdown Group: PA / Team Secretary - Mat...

HR Business Partner (Maternity Cover 12 Months)

£30000 - £34000 Per Annum 25 days holiday, Private healthcare: Clearwater Peop...

Business Analyst - London - Banking - £400-£450

£400 - £450 per day: Orgtel: Business Analyst - Credit Risk - Banking - London...

Day In a Page

The children were playing in the street with toy guns. The air strikes were tragically real

The air strikes were tragically real

The children were playing in the street with toy guns
Boozy, ignorant, intolerant, but very polite – The British, as others see us

Britain as others see us

Boozy, ignorant, intolerant, but very polite
Countries that don’t survey their tigers risk losing them altogether

Countries that don’t survey their tigers risk losing them

Jonathon Porritt sounds the alarm
How did our legends really begin?

How did our legends really begin?

Applying the theory of evolution to the world's many mythologies
Watch out: Lambrusco is back on the menu

Lambrusco is back on the menu

Naff Seventies corner-shop staple is this year's Aperol Spritz
A new Russian revolution: Cracks start to appear in Putin’s Kremlin power bloc

A new Russian revolution

Cracks start to appear in Putin’s Kremlin power bloc
Eugene de Kock: Apartheid’s sadistic killer that his country cannot forgive

Apartheid’s sadistic killer that his country cannot forgive

The debate rages in South Africa over whether Eugene de Kock should ever be released from jail
Standing my ground: If sitting is bad for your health, what happens when you stay on your feet for a whole month?

Standing my ground

If sitting is bad for your health, what happens when you stay on your feet for a whole month?
Commonwealth Games 2014: Dai Greene prays for chance to rebuild after injury agony

Greene prays for chance to rebuild after injury agony

Welsh hurdler was World, European and Commonwealth champion, but then the injuries crept in
Israel-Gaza conflict: Secret report helps Israelis to hide facts

Patrick Cockburn: Secret report helps Israel to hide facts

The slickness of Israel's spokesmen is rooted in directions set down by pollster Frank Luntz
The man who dared to go on holiday

The man who dared to go on holiday

New York's mayor has taken a vacation - in a nation that has still to enforce paid leave, it caused quite a stir, reports Rupert Cornwell
Best comedians: How the professionals go about their funny business, from Sarah Millican to Marcus Brigstocke

Best comedians: How the professionals go about their funny business

For all those wanting to know how stand-ups keep standing, here are some of the best moments
The Guest List 2014: Forget the Man Booker longlist, Literary Editor Katy Guest offers her alternative picks

The Guest List 2014

Forget the Man Booker longlist, Literary Editor Katy Guest offers her alternative picks
Jokes on Hollywood: 'With comedy film audiences shrinking, it’s time to move on'

Jokes on Hollywood

With comedy film audiences shrinking, it’s time to move on