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Pensions minister slams fund managers over pay packets and diversity

Fund managers have been criticised for failing to take action on executive pay at the companies they invest in.

A new report from the Association of Member Nominated Trustees finds that less than a quarter have a specific policy on voting against excessive pay.

Meanwhile, over half of managers failed to disclose a clear policy for tackling climate change failures at their holdings.

More than 30 per cent did not include any reference to board diversity.

The AMNT is calling for fund managers to disclose their voting policies publicly.

Pensions minister Guy Opperman says: “It’s utterly unacceptable that most pension fund managers don’t have published policies and practices to combat climate change, and public commitments to tackle excessive pay and promote gender and ethnic diversity are all too rare.

“Being vague or secretive with the trustees and savers they represent is out of order.  These obstructive fund managers need to take action now as effective and responsible shareholders.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Andrew Cartlidge 30th May 2019 at 5:45 pm

    Executive pay should be aligned with long term corporate business growth – and (unless specified otherwise)with the assumption that the corporation would like a long, healthy and successful (profitable) life under its management. In UK plc share options are handed out too heavily, too soon and indiscriminately, with management incentivised above all to find buyers for the businesses they are supposed to be managing, rather than to grow them. The tragedy for the UK economy, not least in the gradually increasing foreign income deficit, is self-evident. Companies need capable boards of directors above all else and assuming a politically imposed diversity represents superior capability is absurd. Boards of directors must above all be effective – window dressing Boards for the sake of diversity of any description is insulting to those ‘represented’. Appointment should be strictly on merit – discrimination is never positive – although the Minister evidently considers discrimination against men, straights, Christians and white people in business to be inherently positive. He believes fund management companies should be driving this it would seem? Shame they are so old fashioned and prefer highly qualified and experienced directors, preferably appointed on merit and without discrimination based on sex, religion, race, creed or sexual orientation.

  2. Julian Stevens 31st May 2019 at 8:18 am

    For as long as Mr Opperman shies away from ever mentioning the two most burning issues hanging over the pensions framework, namely the LTA and the TAA, I have no respect for him or anything he says. He’s obviously been told in no uncertain terms to steer well clear of both these issues and to try to distract attention from them by making as much noise as possible about everything and anything else.

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