Investors increase pressure on diversity, executive pay and climate change

The Investment Association have this week issued a press release setting out expectations on issues including diversity, executive pay and climate change ahead of this year’s AGM season.

UK listed companies are expected to report the ethnic diversity of their boards and meet the Parker Review targets to ensure at least one director from an ethnic minority background by 2021. A red alert will be given to companies with 30% or fewer female directors (an increase from last year’s 20% threshold).

Expectations are also set out to ensure appropriate pay practices in the context of COVID (e.g. no ‘catch-up’ awards or salary increases designed to compensate for reduced pay during the pandemic). Climate also continues to be an area of focus with investors concerned to ensure companies are considering the impact of climate change on the long-term value of their business. The press release can be found at: http://bit.ly/3svFokZ