Barclays faces pressure on its net zero plan -- it was one of many companies at risk of a fractious AGM this year
(Picture: PA)The onset of April means Spring is in the air but in the City, it means AGM season is getting underway.
Management teams are gearing up to meet shareholders, in some cases for the first time for two years in the flesh.
In many cases, get-togethers will be fractious.
Last year saw a jump in the number of investor revolts over pay as shareholders punished CEOs seen to be unfairly profiting from an economic rebound from Covid-19. Boards also faced pressure on things like environmental impact and diversity.
2022 looks to be more of the same. Magazine publisher Future and WH Smith have already faced big rebellions over executive pay and a backdrop of the cost-of-living crisis means large remuneration packages look even more tasteless than usual. A rebellion is looming at cruise operator Carnival.
Cost-of-living will crop up in other votes, with campaign group ShareAction pushing for action on the Living Wage at Sainsbury’s for example.
On diversity, the Investment Association and shareholder advisory groups ISS and Glass Lewis have all told the City to vote against any companies not taking it seriously.
But perhaps the thorniest issue is the environment. Almost every FTSE company now has a net zero plan but the quality varies. Campaign group Market Forces has already said Barclays and Standard Chartered have more work to do when it comes to cutting back on financing polluters.
The problem is banks like these are also under pressure from the government to ramp up lending to North Sea oil and gas producers as Russian gas disappears from the market.
ESG has never been straightforward but the new overlay of the UK’s energy security makes the waters even muddier.
All this means executives will have a lot of explaining to do at AGMs this year. Will investors be willing to listen?
