UK firms toughening up stock bonus plans - Fidelity CIO, Equities
LONDON, July 3
LONDON, July 3 (Reuters) - UK companies have made "significant progress" in requiring executives to hold stock awarded in bonus plans for longer, said Dominic Rossi, equities chief investment officer at fund manager Fidelity Worldwide.
Nearly half of FTSE 100 firms now force executives to hold stock in so-called Long-Term Incentive Plans (LTIPs) for a minimum of between three and five years, up from 17 percent at the start of 2013, he said.
Last year, Fidelity said it planned to vote against pay plan resolutions at the annual general meeting of companies it invests in if they had a LTIP plan of three years or less.
As a result, Rossi said Fidelity had voted against at least 1 proposal at 52 percent of AGMs so far in 2014, the first time it had voted against a majority of boards. (Reporting by Simon Jessop; editing by Steve Slater)