We are advocates for transparent markets, accountable corporations and responsible investments

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.

Vedanta AGM - 28th July

We have a number of concerns about Vedanta Resources’ handling of environmental, social and governance issues.

We recommend that shareholders oppose the election of senior non-executive director Naresh Chandra, who is chair of the group health, safety and environment committee, and the remuneration committee. PIRC considers the failure of the company to recognise and address weaknesses in health and safety controls exposed by the incident at the Balco power plant during the year is a significant indicator of poor governance. The failure of the group to engage with explicit investor led ESG concerns over the impact of group activities on the Niyamgiri region and the control issues raised by the fatalities are evidence of a lack of competent oversight in our view. We also have concerns over the payment of annual bonuses by the committee of which he is chairman in apparent contradiction of the safety criteria upon which such awards can be made and the award of unexplained significant salary increases to executives in the year.

For similar reasons we recommend opposition to the election of non-executive director and remuneration committee member Euan Macdonald, and non-executive Aman Mehta, who chairs the audit committee and sits on the remuneration committee.

Full PIRC report available here.
 

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