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Unjustified Remuneration at Greggs and Avast

The markets seem to be settling down from the Covid-19 panic even if the impact on company results is far from clear. But it has given me time to read the Remuneration section of a couple of Annual Reports. Firstly Greggs (GRG). Their Annual Report is a masterpiece of explaining why the company has been so successful of late – to quote from it: “Cheers to a record-breaking year. Since 1939 we have been on a roll….”. But it was clearly written ...

FT 20 April 2020, AGMs in these Covid times – ShareAction

ShareAction has written to FTSE100 Chairs, concerned that two out of three FTSE100 annual general meetings (AGMs) announced so far are going behind closed doors, indicating a trend of shareholders being shut out in the context of Covid-19. Companies including BAE Systems, HSBC and Next are holding AGMs with two members of the board physically present, without giving shareholders the opportunity to participate virtually. In contrast, Taylor Wimpey, RBS and others have taken steps to ensure that shareholders are heard and answered ...

An Urgent Call to Include Individual Shareholders in New Issues – Sign Now!

Treat all shareholders fairly. There is no need to ignore individual shareholders in raising funds. Sign the petition now https://allinvestorsmatter.co.uk The Times reported today 20 April 2020 our letter (see https://allinvestorsmatter.co.uk/) which was co-signed by Mark Northway, Chairman of ShareSoc, our Patron Lord Lee (John Lee) , PrimaryBid and an impressive list of industry heavyweights. We have been working closely with PrimaryBid on this initiative. The Times article is here: https://www.thetimes.co.uk/article/city-chiefs-demand-fair-shares-for-equity-raises-hr9fhzzb8 This is an urgent call for UK PLCs, industry bodies, regulators, investors, ...

RBS Shareholder Campaign and AGM voting recommendations – Update 18, 17 April 2020

 RBS could do better! It would be wrong to lambast RBS in the eye of the COVID-19 storm, but we note the following issues: 2020 AGM solution requires voting before discussion Directors’ shareholdings are too small – no alignment with shareholders No information on potential loan impairments from COVID-19 pandemic Market cap of £12bn is too small versus £723bn total assets The RBS Board has in this time of crisis, reverted to type – communication flows and quality of ...

Communicating with Shareholders in Covid times

The FRC have prepared this infographic about communicating Covid-19 impacts to shareholders (click to view larger image). Online Q&A forums and live streaming of AGMs are good ideas. However, individual investors are an important constituency in this, but not properly considered in the new guidance on AGMs. Shareholders will want to question directors about the impact of coronavirus and its implications on the company liquidity and solvency and will want reassurance about these and the ongoing business model. Never has the importance of ...