UK AGM Season Review

Last year I wrote of the 130% rise in dissent on share issuance resolutions despite the Pre-Emption Group’s 10%+10% guidance. That level of dissent has remained elevated in 2024 with more than 45 share issuance proposals in the FTSE100 receiving significant dissent.

A notable development is the sharp drop in the level of dissent on remuneration reports. This year, 7% of FTSE 100 AGMs faced dissent, versus 20% last year. If this trend (which we take some credit for) continues towards absolute tranquillity, we may find ourselves surplus to our clients’ needs! There is no single ultimate driver of this but rather an aggregation of smaller factors; improved awareness by companies of what investors will (or won’t) support, a general softening of investor stringency, and finally the high levels of TSR across the FTSE100 have warranted rewarding outperforming managers.

The second factor – the softening of investor stringency – is perhaps the most curious. While the media would like us to believe this is a defensive response against a talent exodus to the remunerative paradise of America, the reality is that investors are content to reward management for excess performance in properly constructed remuneration policies.

As a closing remark I would like to state my sincere thanks to our loyal clients, to my devoted colleagues who serve them, to the investors for their openness and transparency, and to the all the advisers we work with for your continued partnership.

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Anthony Kluk

Head of Market, UK

anthony.kluk@georgeson.com

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