Sunday, 29 March 2009


Is UKFI going to vote against or abstain on the RBS remuneration report? That's the suggestion in some press reports today. Interesting development if it does happen for a number of reasons. First, it will disrupt the argument that somehow the Government was responsible for Fred Goodwin's pension. Second, it will demonstrate that UKFI won't just be supporting everything that the boards of the banks in which it has a stake suggest - that in turn will make fund managers who take a softer line look well out of line. Thirdly, it will surely raise some broader questions about shareholder engagement over pay. The vote is only advisory, so will this example lead to calls that it should be binding?

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