What we're doing to improve standards.


Governance

Sacha Sadan is Director of Corporate Governance and his team has expanded to seven professionals with an average investment experience of 14 years.

Sacha reports directly to the Legal & General Investment Management CEO. This structure, as well as the ability to engage with two independent non-executive directors on our board, ensures that conflicts of interest are reduced and appropriately managed.

Delivery

During 2012, we voted at 2,616 general meetings of 2,541 companies, covering all major developed markets. We followed-up with companies on our adverse votes in key markets. This allowed us to explain our voting policy and rationale as well as to build relationships with companies in these regions.

We voted against 126 remuneration-related resolutions and 22 remuneration committee chairman in the UK.

We were consulted on 144 executive remuneration plans. Of those where we recommended changes, over 54% amended their plans, and 10% dropped their proposed changes partially or completely. Of those who didn’t change their plans, we voted against their remuneration reports.

We conducted in-depth engagement with 249 individual companies on 425 occasions, with over 30% of such engagements covering environmental and/or social topics

During 2012 we signed up to new initiatives in order to broaden our engagement capabilities, including:

  • the Asian Corporate Governance Association (ACGA)
  • the Principles for Responsible Investment (PRI) Fixed Income work-stream
  • the Institutional Investor Group on Climate Change (IIGCC)
  • a Climate Risk sub-group
  • the UK SIF Leadership Committee.

We published a Fundamentals article on executive remuneration, which discussed the shareholder spring movement and the wider issue of remuneration, which you can read (Download PDF:) here

We also published our first ‘(Download PDF:) ESG Spotlight’ (PDF) thought piece on the topic of sustainability in China.

Further details on our corporate governance activities can be found on our LGIM website.

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