Market Tracker Trend Report AGM Season 2018

14 Jan 2019 | 2 min read

AGM

This Market Tracker Trend Report, AGM season 2018, analyses the latest market practice and trends emerging from the FTSE 350 annual general meeting (AGM) season 2018.

Key topics in the report include:

  • an in-depth look at diversity disclosures in the annual report, encompassing both gender and ethnicity
  • analysis of the progress of the FTSE 350 towards achieving boardroom diversity targets
  • details of significant shareholder opposition to resolutions and the development of public disclosures regarding shareholder dissent following the implementation of the Investment Association’s public register in December 2017
  • a review of the usage of share buyback resolutions, given recent media and government focus on the potential negative sides of using buybacks to inflate executive pay
  • a summary of market practice regarding Brexit disclosures, and
  • statistics on the usage of virtual and hybrid AGMs

Key findings of our research, which covered the 2018 AGM season for all FTSE 350 companies except for closed-ended investment companies (totalling 294 companies), include:

  • progress continues in improving gender diversity in the boardroom, but it has slowed in comparison to recent years: 22.8% of FTSE 350 companies already meet the 2020 33% target set by the Davies Five Year Summary and the Hampton-Alexander Review, and there were 5 FTSE 350 companies with all-male boards
  • less progress has been made in relation to women appointed to executive board roles: 83.6% of FTSE 350 companies have no women in executive director positions
  • ethnic diversity disclosures are up by 93% since the 2017 AGM season, and
  • director re-election and remuneration were the most common resolutions to receive significant shareholder opposition

This report includes expert commentary from Will Chalk, Partner and Head of Corporate Governance at Addleshaw Goddard LLP, Jonathan Fletcher Rogers, Partner and Head of the Employee Incentives Team at Addleshaw Goddard LLP, Pavita Cooper, Founder of More Difference, and Peter Swabey, Policy & Research Director at ICSA: The Governance Institute.

Click here to download the full report in PDF format.

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