The Investment Association has announced that it will target pension perks and poor diversity in the 2019 AGM season.
The IA’s Institutional Voting Information Service (IVIS), which provides corporate governance research to investors to inform their voting decisions during the AGM season, will ‘red-top’ companies who pay newly-appointed directors pension contributions which are not aligned with the majority of the workforce. A red-top is the highest level of warning that the IVIS issues and is applied to those companies whose investors should have the most significant and serious corporate governance concerns.
The IVIS will also ‘red-top’ companies that have no, or only one, women on their board. IVIS will also issue an ‘amber-top’ (the second highest warning) to companies not on course to meet the requirements of the Hampton-Alexander review, for 33% of women on their board by 2020. IVIS will also flag any board with women representing 25% or less.