A new report from Linklaters, Board Pay in FTSE 100 Companies – 2017, a survey of the 2017 AGM season to date, has shown that, in spite of concerns being raised by IVIS, the investor representative body, 95% of policies were supported by shareholders. Alex Beidas Employment and Incentives partner, Linklaters.

This is no doubt due to far greater direct engagement between companies and shareholders, resulting in less formal opposition to pay resolutions. Companies are also trying to meet investors’ expectations for greater disclosure on matters such as bonus performance measures and targets. This may explain why there have been no large pay revolts in 2017 for the FTSE100.

The report also shows: Only 28% of implementation reports had an IVIS* amber top**, though 39% of policies were given an amber IVIS top. The number of red and amber tops for implementation reports fell in 2017. The amber top policies received an average of 95% support from shareholders. Shareholders did not reject any policy reports (one was withdrawn)

More than 50% of the companies surveyed put their pay policies to a binding shareholder vote for the second time, as well as seeking their annual advisory vote on implementation reports. Only one implementation report was voted down.

Linklaters Employment and Incentives partner Alex Beidas says: “Pay policies are receiving substantial shareholder support because of greater engagement with companies. But at the same time, many policies still include elements which may result in large pay-outs in the future so this is unlikely to be the end of the story.”