LONDON (Reuters) - Royal London Asset Management (RLAM) said on Thursday it will vote against the 2015 remuneration reports at Standard Chartered (L:STAN) and Reckitt Benckiser (L:RB), as a rebellion against soaring executive pay gathers pace.
Flagging a "spring of discontent" during Britain's peak season for annual company meetings, Ashley Hamilton Claxton, Corporate Governance Manager at RLAM said investors were objecting to plans to award bumper packages in the face of underwhelming performance.
"Our view is that pay should remain tied to performance and we feel it is important to recognise companies where the board has engaged productively with shareholders," he said in a statement.
"Where votes against remuneration reports have been high, several key themes stand out; Complex long-term remuneration strategies, cash 'top-ups' via pension payments and a failure to use common sense and discretion," he added.
Oil firm BP (L:BP) and medical equipment firm Smith & Nephew (L:SN) have already seen investors reject last year's payouts in non-binding votes, while shareholders in miner Anglo American (L:AAL) also reacted strongly against its pay plans during a year of tumbling share prices and lower returns.