Research reveals increase in UK shareholder activism

According to a recent report, shareholder activism among UK enterprises has spiked in the past year, as investors now take a stand on a range of issues, from the environment to governance.

Following COP26 in Glasgow, environmental issues have come to the fore. In 2021, a total of 16 climate-related resolutions from shareholders were tabled, in comparison to only five in 2020.

UK consumers looking for (environmental, social and corporate governance) ESG and ethical investment advice in Chester, Shropshire and other parts of the country sometimes consult expert wealth management firms. Able to create portfolios that balance risk and return, wealth managers can also select assets for their clients that reflect their personal ethics. This may involve investments in sustainable energy sources and organisations that promote transparency regarding governance or a responsible attitude towards the impact they have on the environment.

Significant revolts have also been witnessed against directors being reappointed at FTSE 350 businesses, climbing by 40 percent, rising from 30 last year to 42 in 2021. Experts have commented that British companies and the directors they appoint are now under a heightened level of scrutiny from investors who are taking an active stance on governance issues.

Over 20 of the directors involved were either chairmen or members of remuneration committees. This data suggests that UK shareholders are now paying much closer attention to deals involving over-generous payments.

Additionally, FTSE 350 firms found that while 94 percent of votes were in favour of pay reports last year, this figure slid to 91.6 percent in 2021.

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