Press releases

Legal & General Investment Management votes against at least one resolution at one in four UK companies in 2016

Legal & General Investment Management (LGIM), one of the largest investors in the UK stock market, today released its 2016 Corporate Governance Report revealing that it voted against at least one resolution at 23% of UK companies in 2016, up from 18% in 2015.

4 Apr 2017

Globally LGIM voted against at least one resolution at 56% of companies in the main FTSE World Indices, compared to 52% in 2015. 

In total, LGIM had 500 company meetings in 2016, 39% of which were held with companies based outside of the UK. The top five themes discussed were: board composition (e.g. diversity, board refreshment, quality and skills), remuneration, strategy, nomination and succession, and climate change.

Sacha Sadan, Director of Corporate Governance at LGIM, commented: “Active ownership and engagement continues to drive our approach to corporate governance. The strengthening of our voting policies on remuneration, board composition and diversity in 2016 reflects how seriously we take our responsibility to act as stewards and influence change.

“Consistent and ongoing dialogue with companies is fundamental to our active ownership approach, and we engage with companies throughout the year to effectively influence and change behaviours. The corporate governance landscape is continuing to evolve, and our clients, companies, and regulators are increasingly recognising the role LGIM can play as one of the largest global investors1.”

2016 marks the fifth year in a row that LGIM has not abstained when voting in the UK.

The key themes addressed in LGIM’s corporate governance report include: 

Executive remuneration

In 2016 LGIM voted against 118 pay resolutions in the UK and against 14% of companies on just pay alone. Where necessary, LGIM used its vote against individual directors and in 2016 it voted against 18 named directors on pay and 89 individual directors in total, an increase of 82% compared to the previous year.

In its 2016 ‘Mind the Gap!’ report, LGIM expresses concern that the gap between executive pay and that of the workforce has continued to widen. It highlights the steps it has taken to try and improve the link between pay and performance, and to reduce the pay gap between executives and the wider workforce.

LGIM has called for companies to publish the pay ratio between the median employee and the CEO and set out its expectations in its response to the government green paper on corporate governance.

Sacha Sadan continued: “We have been pressing for pay to be aligned with long term shareholders for some time, and while the majority of companies are getting the message, there remain a significant minority who continue to benchmark just against their peers. The increasing pay gap is having an impact on society and that is why we are taking a stronger line on bonus awards and the need for companies to publish their pay ratio. Company directors need to relate to their entire workforce now more than ever.” 

Board accountability and diversity

LGIM continues to push hard on board diversity and is supporting the Hampton-Alexander Review. It will continue to strengthen its principles on board diversity over time, supported by the expectation that all boards in the FTSE 350 will comprise of at least 30% women by 2020. Over 2016, LGIM engaged with over 50 companies on diversity and voted against the Chairman of 12 UK companies for poor board diversity and weak policies.

LGIM has also been working with companies to improve board effectiveness, championing non-executive director education and board effectiveness reviews. 

Climate change

Sustainability topics were raised at 47% of company meetings in 2016, up from 35% in 2015 with climate change continuing to be a key focus. In 2016, LGIM committed to its Climate Impact Pledge, which will see companies excluded from its Future Fund range if they fail to embrace the transition to a low carbon economy. In all other funds where LGIM cannot divest, it will vote against the Chair of the board on this issue. 

Sacha Sadan said, “Climate change presents material long-term financial risks in many sectors and that is why our Climate Impact Pledge is so important – it will be applied to all of the assets LGIM manages globally and the combined approach of ranking, engaging, voting and divesting sends a powerful message that investors are serious about tackling this issue. With over $1 trillion2 of assets under management, our collective voice can carry a lot of weight.”

The LGIM Corporate Governance Report, ‘Active Ownership’, is available here. A summary report is also available here


1 IPE Top 400 Asset Managers 2016:

2 LGIM internal data as at 31 December 2016. These figures include assets managed by LGIMA, an SEC Registered Investment Advisor. Data includes derivative positions and advisory assets

Notes to editors

Legal & General Investment Management

Legal & General Investment Management is one of Europe’s largest asset managers and a major global investor, with total assets under management of £1.29 trillion1. We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.

For more than 50 years, we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property, and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.

1Globally, we manage assets of £1.42 trillion or CHF 1.75 trillion as at 31 December 2021 (source: LGIM internal data as at 31 December 2021). The data combines assets under management by LGIM in the UK, LGIMA in the US and LGIM Asia in Hong Kong. Assets under management include securities and derivatives positions.

*at 11 Jan 2023


Past performance is not a guide to the future. The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. For illustrative purposes only. Reference to a particular security is on a historical basis and does not mean that the security is currently held or will be held within an LGIM portfolio. The above information does not constitute a recommendation to buy or sell any security. Views expressed are of LGIM as at 3 January 2023.


In the European Economic Area, it is issued by LGIM Managers (Europe) Limited, authorised by the Central Bank of Ireland as a UCITS management company (pursuant to European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (S.I. No. 352 of 2011), as amended) and as an alternative investment fund manager with "top up" permissions which enable the firm to carry out certain additional MiFID investment services (pursuant to the European Union (Alternative Investment Fund Managers) Regulations 2013 (S.I. No. 257 of 2013), as amended). Registered in Ireland with the Companies Registration Office (No. 609677).  Registered Office: 70 Sir John Rogerson's Quay, Dublin, 2, Ireland. Regulated by the Central Bank of Ireland (No. C173733).

LGIM Managers (Europe) Limited operates a branch network in the European Economic Area, which is subject to supervision by the Central Bank of Ireland. In Italy, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the Commissione Nazionale per le società e la Borsa ("CONSOB") and is registered with Banca d'Italia (no. 23978.0) with registered office at Piazza della Repubblica 3, 20121 Milan, (Companies' Register no. MI - 2557936). In Germany, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the German Federal Financial Supervisory Authority ("BaFin"). In the Netherlands, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the Dutch Authority for the Financial Markets ("AFM") and it is included in the register held by the AFM and registered with the trade register of the Chamber of Commerce under number 74481231.Details about the full extent of our relevant authorisations and permissions are available from us upon request. For further information on our products (including the product prospectuses), please visit our website.