In an article published yesterday in the Financial Times Guillaume Prache of BETTER FINANCE was quoted on the topic of fund houses backing board decisions. Following revelations that asset managers back corporations on issues such as executive pay at least 90 per cent of the time, fund houses have been accused of failing to hold companies they invest in accountable.
Guillaume Prache, managing director at BETTER FINANCE, said that the fact that 90 per cent of votes cast by asset managers are “pro management is not a good thing [for investors]”.
Eric Chalker, policy direct at the UK Shareholders’ Association, member organisation of BETTER FINANCE, also added that it is still surprising that "many AGM resolutions receive near-unanimous support, even when there are obvious reasons for directors’ wishes to be challenged".
Read the full article here.