FTI Consulting Governance Event 2023

The event consisted of a keynote address from Vanguard, followed by a panel discussion with Capital Group, Vanguard, Glass Lewis, and ISS, and concluded with a reporting workshop from Glass Lewis. During the panel discussion, the corporate governance and stewardship representatives from Capital Group, Vanguard, Glass Lewis, and ISS each outlined their respective views on engagement and reporting and whether they were having the desired impact of enhancing governance and stewardship practices across capital markets. Each representative also provided additional insight and context into their organisation’s approach to evaluating company practices regarding remuneration, board effectiveness, committee structures and the oversight of ESG risks and opportunities, among other issues.

While remuneration was inevitably a key focus – particularly against the backdrop of the cost-of-living crisis and the potential windfall gains from 2020 LTIPs – the panel also covered the independence and overall composition of boards and their committees, the competitiveness of the UK and Irish markets, whether governance and remuneration considerations are truly a barrier for companies looking to list in the market and how ESG factors are impacting proxy voting, if at all. Despite the differing views on some topics, it was clear from the panel discussion that companies’ ability to provide clear and meaningful disclosure, alongside open shareholder engagement, is the benchmark standard for investors and proxy advisors. The workshop section of the event, which was delivered by Glass Lewis, brought to life much of the panel discussion, and provided real-life examples of what good reporting looks like.

Following the event, our governance team has set out six key takeaways for the period ahead: