Everyone knows we should tie executive remuneration to long-term metrics and give shareholders more powers to oversee pay policies, right?
Yeah, except that if we make execs wait for rewards they sharply discount them (if some really put much value on …Read more…
Sports Direct AGM on Wednesday 7th September
Next Wednesday see the AGM of Sports Direct take place. Since I last blogged about this it has become clear that a major investor revolt is underway.
The company has been publicly criticised by the Investor Forum (a first), which has called for a thor…Read more…
Asset managers and Deliveroo drivers
I’ve been banging on for a few years about incentives and motivation. It’s been interesting to watch as the common sense that performance-related pay is A Good Thing has lost legitimacy. However even despite the growing awareness of problems with relyi…Read more…
Altruism, reciprocity, fairness and the Left
One of the things that troubles me about Labour at the moment is the apparent retreat into “worthy” politics. It’s typified a bit by that slogan “Standing Up, Not Standing By” and most of all by that godawful meme where Jeremy Corbyn says that socialis…Read more…
Sports Direct AGM: Vote FOR resolution 19
I’ve blogged quite a bit about Sports Direct previously, now it’s your chance to do something about it.
The Sports Direct AGM takes place on 7th September, and the company has just issued its notice of meeting. Resolution 19 has been filed by Unite an…Read more…
No, don’t leave executive pay to the shareholders
Alex Edmans has a blog on executive pay on HBR here. It’s wrong-headed in my view, so here’s a largely sarcasm and swearing-free response to it.
Politicians typically make two suggestions for pay reform. First, to cap, or at least force the disclosure of, the ratio of CEO pay to median employee…Read more…
Pay ratios: the argument moves Left
After all the pre-billing, the Investment Association’s report on executive pay (issued yesterday) looks a little bit behind the curve. It has already been overtaken by events, with the new Conservative Prime Minister already advocating disclosure of p…Read more…
Sports Direct: investors now have to act or lose legitimacy
About a year ago, the group I’m involved in – Trade Union Share Owners (TUSO) – wrote out to major Sports Direct shareholders calling on them to challenge the company. Specifically we recommended that other shareholders join TUSO in signalling concerns…Read more…
The slow-moving car crash
Executive pay is like a slow-moving version of MPs’ expenses car crash, but without the degree of self-awareness shown by politicians (who do face a meaningful threat of removal from office). Each year the same headlines, each year the same justifications, each year a bit more legitimacy lost. This…Read more…
Worker directors: some initial responses
So, just a day in and already we can see some are already unhappy with the prospect of workers being represented on the boards of companies. There is a letter from an asset manager in the FT here specifically on worker directors, and a response from th…Read more…
Enter, stage right: Workers on boards
“I want to see changes in the way that big business is governed. The people who run big businesses are supposed to be accountable to outsiders, to non-executive directors, who are supposed to ask the difficult questions, think about the long term and defend the interests of shareholders. In…Read more…
Inequality, human capital and investors
I’ve blogged before about the obvious weakness on the S in ESG. I’m someone who has come to responsible investment with a labour movement background and I have been frequently disappointed by how little attention labour issues get.
It isn’t like these…Read more…
Santa Rosa snippet
Before last year’s AGM, National Express sent a report to shareholders attempting to rebut criticisms of the company made by two MPs in a report by the Trade Union Group of MPs. Notably this included a full-throated defence of the company’s choice to r…Read more…
National Express hits the buffers in Santa Rosa
Last week, I went to my fourth National Express AGM, and the second since I joined the ITF. I have to say this is a company that I view with increasing exasperation and I know colleagues both within the labour movement and the responsible investment fi…Read more…
Ladbrokes: at it again
Last week Ladbrokes saw a 42% vote against its rem report. This was in response to a termination payment, and the company in turn issued a very solemn statement as part of its AGM results acknowledging the vote.
The Board notes the vote in respect of t…Read more…
Transport unions unite to condemn National Express
Top transport unions condemn National Express over labour violationsSenior representatives of the transport sector in the global trade union movement have condemned National Express over on-going labour rights abuses at its US school bus subsidiary, Du…Read more…
Ballax about bankers bonuses
I’ve been meaning to blog about this for a few weeks, and only now have time. I think the bonus cap is another issue where it is important that we look at what the industry (and other interested parties like rem consultants) told us would happen, and w…Read more…
Solidarnosc win in Gdansk
Ridiculously pleased about this –
Celebration as Polish dockers’ union wins new deal “The ITF family has stood shoulder-to-shoulder with them as they have fought against the belligerent and intimidatory tactics of previous management. We are hopeful that dockers there can have better…Read more…
Corp gov reform: do something meaningful or don’t bother
I blogged previously about Liam Byrne’s intervention on company law etc. More recently Liz Kendall has written something for Progress that slightly touches on the same turf. There is one sentence of significance for anyone interested in left-of-centre …Read more…
BVCA and the Beecroft Report
I think it’s fair to say that the Beecroft report, prepared by Tory donor Adrian Beecroft, was not universally welcomed in the labour movement.
One of the more controversial elements was the introduction of employment tribunal fees. The intention behi…Read more…