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Railpen votes against asset management remuneration

Investor signal on fund management pay

Railpen, the £19bn (€22bn) Railways Pension Trustee Company, voted against or abstained on remuneration reports at some of the UK’s most prominent listed asset management houses during the recent annual general meeting season.
It declined to support management on remuneration at the likes of fund industry mainstays F&C Asset Management Plc, Henderson Group Plc, Jupiter Fund Management Plc and Schroders Plc at their AGMs in May, according to its voting report for the period which was published this month.
At F&C’s AGM on May 3, the investor voted against approving the remuneration report and amending the long-term remuneration plan.

At the Henderson meeting a day later, it voted against the remuneration report and a further four proposals relating to long-term incentive plans.
At Schroders, Railpen voted against not just the remuneration report but the re-election of founding family member Bruno Schroder as a director. It also abstained on accepting the 200-year-old firm’s 2010 report and accounts.In addition, Railpen voted against the remuneration report of Jupiter on May 18.
Other finance firms where Railpen made its opposition on remuneration felt either by voting against or by abstaining include Old Mutual, Standard Life, Prudential Plc, Standard Chartered, Collins Stewart and Witan Investment Trust.

Railpen, a long-standing proponent of responsible ownership, has a share voting alliance with fellow investor the Universities Superannuation Scheme (USS). It signed up to the UN-backed Principles for Responsible Investment (UN PRI) late last year.

Meanwhile, the £2.3bn East Riding Pension Fund in Yorkshire, has issued a statement of compliance with the UK Stewardship Code for Institutional Investors. The fund, which splits the management of its assets between an in-house team and Schroders, added that it plans to publish summary details of its voting activity in its annual report.