Investment - Articles - RLAM on Theresa May's corporate governance announcement

 “Royal London Asset Management is encouraged that corporate governance is on the future Prime Minister’s agenda. If Theresa May is serious about this we expect to see concrete proposals, addressing the governance issues found in British boardrooms.

 “Royal London Asset Management has long campaigned for more to be done to ensure that executive pay remains tied to long-term, sustainable business performance. Good corporate governance is vital to the success and sustainability of UK companies.

 “However, care must be taken over how these issues are approached. In particular, we do not necessarily agree with the annual binding vote on pay. We believe imposing an annual binding vote could be detrimental, forcing shareholders to focus on shorter performance periods when evaluating whether performance has merited the remuneration paid to senior executives.

 “Now is the time to not just tackle the issue of executive pay but other key issues such as succession planning and future proofing of businesses, ensuring long-term value is delivered to shareholders.”