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Companies settled into the post-pandemic environment this year, with 42% of FTSE 350 companies opting for a hybrid annual general meeting (AGM) during the 2022 AGM season*. The figures may be somewhat unsurprising given that a third of the FTSE 350 companies we looked at during the 2021 season had proposed a change to the company’s articles to enable hybrid meetings. However, it is notable that while a significant percentage called on the authority to do so, many reports highlight difficulties surrounding the logistics of hosting an effective hybrid meeting. FTSE 100 companies were more likely to hold a hybrid AGM than FTSE 250 companies, with 64% of FTSE 100 companies choosing this format in comparison to 31% of FTSE 250 companies holding an AGM during the 2022 season. 

Data compiled by Market Tracker indicates that 53% of companies reverted to solely physical meetings, with the remaining 5% opting for restricted attendance meetings or exclusively virtual meetings. Although physical meetings emerged as the marginally more popular choice, there are indications that in-person attendance this year was lower than anticipated. At the other end of the spectrum, we saw shareholders reject the idea of exclusively virtual shareholder meetings, for example at the AGM where a proposed resolution to amend the articles to allow virtual meetings failed to pass. This suggests that refining the AGM format and finding effective approaches to ensure shareholder engagement via a hybrid platform is likely to continue to be a key consideration for companies in the upcoming AGM season.

Overall, the 2022 season witnessed a decline in dissenting votes, with 64 companies receiving significant votes against at least one resolution, compared to 81 companies in the 2021 AGM season. Similarly, the number of companies seeing one or more failed resolutions fell to 12 (4%) in 2022 from 27 (6%) in 2021. Nevertheless, shareholders kept the pressure and scrutiny high on companies, requisitioning resolutions on topics such as climate change reporting and disclosure, pensions and pay. Unsurprisingly, remuneration remained the most controversial topic during the 2022 AGM season, with 36% of all dissenting votes being against the resolutions to approve the company’s remuneration report or renumeration policy. This was closely followed by votes against the resolutions to elect or re-elect directors which accounted for 35% of dissenting votes, although it is worth noting that many of the votes against directors were due to concerns over remuneration, with shareholders often voting against members of the Remuneration Committees.

The Market Tracker news service is currently available via the ³ÉÈËÓ°Òô blog and in LexisPSL Corporate as a weekly newsletter. This includes deal analysis, trend reports, transactional updates and hot topic coverage to supplement the product’s extensive database of over 8,000 public company transactions. For in-depth detail on the hot topics in this area this year, a full list of our corporate governance and AGM coverage in 2022 can be found below:

An unstable triad—a look at the contradictions in ESG

Removal of travel restrictions sees WH Smith’s profits take off

BlackRock to extend Voting Choice programme to UK retail investors

HSBC given smack on the wrist by ASA for ‘greenwashing’ ads

BAE Systems thrives amid fears of a new Cold War

Further volatility on the cards as LME contemplates ban on Russian metal

Rio Tinto diversifies into greener pastures amid market uncertainty

The Lion’s share—asset manager again sees revolt over pay

An uncertain Future—publisher’s shares slide as CEO heads for the exit

Recent AGMs provide some last embers of dissent for 2022

Prudential’s pivot to Asia looks less prudent

Groundhog Day at Cineworld as it once again contemplates bankruptcy

An analysis of dissent during the 2022 AGM season

Rio Tinto treads carefully amid frosty geopolitical relations

Political donations dissent reaches new heights at Investec

Virtual meetings a step too far for shareholders of Telecom Plus

Directors in the firing line as investors target pay

RS Group’s rebranding fails to impress shareholders

Softcat and LondonMetric flout UK board chair best practice

FTSE 350 AGMs: post-pandemic trends in H1 2022

Playtech doubles down on pay as dissent against directors falls

Managing instability—geopolitical risk in an increasingly volatile world

Publisher turns page on pay metric chapter after dissent climbs higher

Ferrexpo’s board takes flak as operations continue amid Ukrainian conflict

Investors target special resolutions at Tullow Oil’s annual meeting

Investors continue to revolt in 2022 AGM season

Shareholders become impatient with climate progress at Shell

Shipping company enters familiar waters as investors again target pay

Virtual meetings in the UK corporate landscape post-coronavirus

Safestore’s 2017 remuneration policy casts a long shadow of dissent

The evolving AGM: adapting to change - Market Tracker Trend Report

Investment community increasingly vocal on linking executive pay to ESG criteria

FTSE Women Leaders Review report shows women now hold 37.6% of FTSE 350 directorships

Liontrust's remuneration policy and LTIP receive considerable investor dissent

Remuneration and pre–emption remain hot topics as 2022 AGM season kicks off

Shareholder revolt at Greencore Group

Shareholder revolt at Mitchells & Butlers

Aviva Investors adds biodiversity and human rights to its engagement repertoire

Shareholder revolt at WH Smith

JD Sports to make further changes to remuneration policy to appease investors

*the 2022 AGM season is defined as companies with a financial year end from 1 April 2021 to 31 March 2022, holding an AGM by 30 September 2022. Our data set covers FTSE 350 companies listed on the index at the date of the financial year end and excludes closed-ended investment companies.