Legal and General Investment Managers have had a history of pressuring companies over items such as pay, diversity and sustainability. In 2017 it voted against 215 UK pay deals and has promised to vote against the reappointment of chairs of the UK's 350 biggest public companies if women don't make up at least 25 per cent of the board.

The threat comes just ahead of the traditional AGM season, and even if LGIM feels the majority of companies are moving in the ‘right’ direction, it has signalled that it will continue to keep the boards focussed.

Politically it comes at a turbulent time, with Carillion (governance), Exxon suits (environment), #MeToo (sexism), GKN (short-termism) and pay gaps between highest and lowest earners (equality and fairness) all creating a situation in which the wisdom of boards and investors is challenged.

As a major shareholder is many UK companies LGIM’s voice on the matter will be hear – but whether it will be obeyed is, of course, a different matter.

Share Story: