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PIRC is the UK's leading independent research and advisory consultancy providing services to institutional investors on corporate governance and corporate social responsibility.

Since 1986, it has been the pioneer and champion of good corporate governance within the UK. PIRC has a wide spectrum of clients ranging from pension funds, faith-based investors, trade unions to banks and asset managers. Its Corporate Governance Service is an authoritative and vital resource for active investors, whilst its widely-read Shareowner Voting Guidelines provide a market-wide benchmark for investors and forms part of the movement for corporate governance reform and long-term wealth creation strategies for responsible investors. For more information about PIRC or to arrange a meeting, contact Janice Hayward, or call us on 0207 247 2323.

UK meetings round-up

Last week saw Cable & Wireless face yet another rebuke from its shareholders over remuneration. With the company now split in two, this was the first AGM for Cable & Wireless Communications, chaired by Sir Richard Lapthorne. The remuneration report received a vote of just under 76% in favour, with 20% opposing, and a further 4% abstaining. PIRC had recommended opposition.

The biggest upset in respect of a director election was at credit company Experian, where non-executive David Tyler saw a vote of 10% against his election, with a further 20% abstaining. PIRC did not regard him as independent, due to his previous role at GUS, but had recommended supporting his election as we believe there is sufficient independent representation on the board. Notably the FT pointed out that Tyler is also an outspoken opponent of annual elections. With a result like this we don’t blame him! Experian also saw a 7% vote against its remuneration report, with just under 4% abstaining.

There was a similar story at Speedy Hire, where chairman David Wallis saw a vote of over 16% against his election. Wallis has been on the board for more than nine years, which may have triggered concerns about his independence. PIRC does not consider him independent but, being satisfied at the level of independent representation on the board, had recommended a vote in favour.

Industrial transportation smallcap Goldenport Holdings saw a string of high votes against a series of resolutions relating to incentive schemes. Three resolutions saw oppose votes of 15%, with one registering 16.5% against. Abstains ranged from 4.5% to 7.5%. PIRC recommended opposition to two of the resolutions.

For the first time in several seasons, political donations were not a controversial issue at the AGM of Caledonia Investments. This year the company instead saw a vote of 23% against its Rule 9 waiver. PIRC has previously noted the recent concern at the issue of ‘creeping control’ and if the result of the waiver led to a controlling stake of 50% we would have recommended opposition. Considering the potential change of stake for the Concert Party; in this instance we again perceived the waiver to be reasonable and recommended support.

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