LGIM Statement: Anglo American AGM
LGIM holding: 2.9% of issued share capital
At Anglo American’s AGM, LGIM voted against the remuneration report. The rationale for this instruction centred on the lack of discretion exercised by the Remuneration Committee to scale back Long Term Incentive Awards (LTIP) to Executive Directors at a low share price. These grants are made as a multiple of salary and have the effect of awarding a higher number of shares which could lead to windfall gains in the future. This is not in line with best practice and is stated in our voting policy.
At the AGM, approximately 42% of investors opposed this item. We will continue to engage with the company giving constructive feedback on their remuneration structure ahead of the binding policy vote next year.
LGIM also supported the ‘Aiming for A’ resolution on climate change at the general meeting. We welcome the Board’s commitment and recommendation for investors to vote in favour of this item. LGIM continues to support the objectives of the coalition and believes that climate change risks are material for Anglo American.
For further information please contact:
Media Relations Manager, LGIM
t: +44 (0) 20 3124 4355
Head of Group Corporate Communications
Notes to editors:
LEGAL & GENERAL INVESTMENT MANAGEMENT:
Legal & General Investment Management (LGIM) is one of Europe’s largest institutional asset managers and a major global investor. LGIM manages £746.1 billion in assets for more than 3,000 clients*. Throughout the past 40 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 a full spectrum of asset classes including equities, fixed income, commercial property and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.
*Source: LGIM as at 31 December 2015