Revealed: How L&G fought to nail the fat cats
Wednesday 01 May 2013
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.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £25000 per annum + OTE £35000: SThree: SThree are a global FTSE 250 b...
£20000 - £25000 per annum + OTE £35K - £45K: SThree: SThree Group have been we...