‘vote out CSR directors’, investors toldApril 2004
Institutional investors have been urged to consider voting against the reappointment of board directors responsible for CSR if their company is not doing enough in this area.
Pensions and Investment Research Consultants, which advises UK pension funds on voting issues and is the UK’s best-known corporate governance watchdog, says this would be one way of ‘signalling disapproval’ of a company’s inactivity. However, it does not say in what circumstances it would recommend voting against the director responsible.
‘We’re looking at ways of targeting board members responsible for these issues,’ said Pirc spokesman David Somerlinck. ‘The idea would be to say, “we don’t think that what you as a company are doing on CSR is sufficient, and that we are going to hold you, Mr Director, responsible, by withholding support for your re-election”.’
Pirc already recommends investors vote against the re-election of directors on other issues, although it is rare for anyone to lose their post. However, Somerlinck said it ‘would send a signal to the board’.
Already a member? click here to login