Pay protests widen as 42pc of investors vote against Anglo American chief’s compensation

Anglo American became the latest company to fall foul of disgruntled investors as the so-called Shareholder Spring against governance at the top of some of Britain’s biggest companies intensified.

The FTSE 100 miner saw 42pc of those shareholders who voted at its annual general meeting (AGM) in London on Thursday do so against the company’s remuneration report.

The ‘no’ vote – centred on chief executive Mark Cutifani’s £3.4m pay packet – is the second largest to date in the current AGM season, behind only BP, where 59pc of shareholders voted against Bob Dudley’s £14m compensation.

The protest came on the same day as the Investment Association, whose members own approximately one-third of the FTSE 100, said that the system used to set top City pay is “widely…broken.”

In an interim report on executive remuneration, a group led by Legal & General chief executive Nigel Wilson said: “The current approach to executive pay in UK listed companies is not fit for purpose, and has resulted in a poor alignment of interests between executives, shareholders and the company.”

The group called for “greater transparency” and “clearer alignment of shareholder, company and executive interests.”

LGIM, the investment arm of L&G, was one of the ring-leaders in the vote at Anglo, voting its 2.9pc of issued share capital against the pay report, blaming the “lack of discretion exercised by the remuneration committee to scale back” long term share plans.\

Anglo American became the latest company to fall foul of disgruntled investors as the so-called Shareholder Spring against governance at the top of some of Britain’s biggest companies intensified.

The FTSE 100 miner saw 42pc of those shareholders who voted at its annual general meeting (AGM) in London on Thursday do so against the company’s remuneration report.

The ‘no’ vote – centred on chief executive Mark Cutifani’s £3.4m pay packet – is the second largest to date in the current AGM season, behind only BP, where 59pc of shareholders voted against Bob Dudley’s £14m compensation.

The protest came on the same day as the Investment Association, whose members own approximately one-third of the FTSE 100, said that the system used to set top City pay is “widely…broken.”

In an interim report on executive remuneration, a group led by Legal & General chief executive Nigel Wilson said: “The current approach to executive pay in UK listed companies is not fit for purpose, and has resulted in a poor alignment of interests between executives, shareholders and the company.”

The group called for “greater transparency” and “clearer alignment of shareholder, company and executive interests.”

LGIM, the investment arm of L&G, was one of the ring-leaders in the vote at Anglo, voting its 2.9pc of issued share capital against the pay report, blaming the “lack of discretion exercised by the remuneration committee to scale back” long term share plans.

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