Tuesday, 7 June 2011

Another remuneration report defeat

At Afren, yesterday. The interesting thing to note about it is that in a way it's a rerun of last year's result (when it narrowly won) - if you include abstentions the vote in favour was just over 40%, the same as last year. Afren only narrowly lost yesterday, so on the face of it all that happened was a slight shift from abstention to opposition. (I say on the face of it as it clearly possible that different concerns drove the oppose vote in each year).

In a way it's a useful result as it may encourage other companies to try and address shareholder concerns whether they receive a high oppose vote but scrape through, rather than take the view that "a win is a win". Just surprised that Afren, having only got the active support of 2/5ths of its shareholders last year didn't make a serious effort to avoid defeat this time around.

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