The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu The leading online blog in the fields of corporate governance and financial regulation. Thu, 16 Jul 2026 13:31:56 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.8 https://corpgov.law.harvard.edu/wp-content/uploads/2024/02/cropped-photography-4-e1706898544564-1-32x32.png Binding Say on Pay in the UK – The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu 32 32 Binding Say on Pay in the UK https://corpgov.law.harvard.edu/2012/07/09/binding-say-on-pay-in-the-uk/?utm_source=rss&utm_medium=rss&utm_campaign=binding-say-on-pay-in-the-uk https://corpgov.law.harvard.edu/2012/07/09/binding-say-on-pay-in-the-uk/#comments Mon, 09 Jul 2012 13:45:11 +0000 http://blogs.law.harvard.edu/corpgov/?p=30302?d=20150113141614EST Posted by Amy L. Goodman, Gibson, Dunn & Crutcher LLP, on Monday, July 9, 2012
Editor's Note:

Amy Goodman is a partner and co-chair of the Securities Regulation and Corporate Governance practice group at Gibson, Dunn & Crutcher LLP. This post is based on a Gibson Dunn memo by Ms. Goodman, James Barabas, James A. Cox, Jeffery Roberts, and Elizabeth A. Ising.

Earlier this year we reported on the UK Government’s proposals to give shareholders of companies greater influence over executive pay through the use of binding votes.

Since the draft proposals were announced the UK has seen the so-called “Shareholder Spring” with majority votes against remuneration reports under the current ‘advisory’ (non-binding) regime at Aviva, Cairn Energy, Pendragon, and WPP; and sizeable votes against the reports at Xstrata (40% against), Barclays, Cookson and UBM (approx. 25% or more against) amongst others.

Building on the momentum created by shareholders on June 20, 2012, the UK Government announced its detailed proposals for a far-reaching reform of the approval mechanism for executive pay, including the use of binding votes. The proposals will likely apply (we await detail) to so-called ‘quoted companies’ (see further below).

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