Home / Business and Economy / Investor Dissent Eases: Companies Engage More, but Boards & Pay Still Clash
Investor Dissent Eases: Companies Engage More, but Boards & Pay Still Clash
20 Nov
Summary
- Institutional investor opposition to company resolutions fell to 13% recently.
- Board appointments and director remuneration remain key conflict areas.
- High promoter ownership ensures most resolutions still pass despite dissent.
The percentage of company resolutions opposed by large institutional investors has declined in the recent six-month period, indicating improved engagement and governance. This decrease in dissent suggests companies are adopting a more consultative stance, benefiting from better regulations and the influence of proxy advisors.
Despite the overall positive trend, significant areas of disagreement persist, particularly concerning board appointments and director remuneration. Investors often question board independence and the alignment of executive pay with company performance, leading to continued flashpoints.
Nevertheless, high promoter ownership in Indian companies ensures that most resolutions pass. Promoters' substantial stakes give them the voting power to push through decisions, even when institutional investors voice opposition, with only a minimal number of resolutions being rejected.
