The PLSA published its 2022 Stewardship Guide and Voting Guidelines on 23 February 2022. The 2022 Guidelines set out the PLSA’s views on current best practice and its voting recommendations for AGMs in 2022.
There have been no substantive changes to the section of the guidelines covering Executive Remuneration. The PLSA notes that in 2021 dissent in connection with remuneration related resolutions more than doubled compared to previous years. It advises that companies demonstrate caution in remuneration packages in 2022 given the continued impact of Covid-19, as well as the substantial increase in the cost of living. This is particularly relevant to companies that have previously received Government support over the past two years or continue to receive such support.
The PLSA welcomes the increased consideration of remuneration through the lens of ESG factors, and would like to see more packages linked to clear targets for performance against achieving a company’s ambitions to meet climate goals.
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