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Should pension funds be doing more to hold the businesses whose shares they own to account?
Your comments:
Yes: The actions of directors and managers have an impact on the financial performance of a company and any subsequent share dividend. Too often decisions are made for the short-term benefit of directors and managers rather than the long-term interests of shareholders, especially pension funds. Robert Harvey
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Yes: Pension funds have a duty of good governance to the pension scheme members. However, the vast majority of pension schemes invest through pooled managers and have to rely on the managers exercising pressure and voting rights in respect of the companies they invest in. John Swain
Yes: Pension funds hold huge amounts of company shares and it is only right that they should demand proper governance and restrained pay and bonuses from company directors. I don’t believe that overall the public is against bonus payments to bank employees for example, but the old adage ‘A fair days pay for a fair days work’ is what they expect. Clearly if a company – bank or otherwise – is losing money, then no one should be getting enhanced pay or shares in the form of bonuses for failure, and the company directors should be held more accountable for such practices. John Paradise
Yes: Pension schemes need to look beyond the tenor of a company CEO to be certain of returns that will provide for liability in decades to come. De-risking by hedging and swaps is not sustainable. It just passes the risk to someone else for a premium. It does not eliminate the loss. Member-nominated trustee of medium size UK scheme.
Yes: Remuneration issue: to control the incestuous ‘good old boys’ club mentality of the majority of company R&A committees – including those with a majority of independent and/or non-execs on them. Keith Nunn
Maybe: There should be more education “for the masses” in order that the issues, problems and solutions can be effectively discussed. Robert Bogusz
No: This question is only being raised because of what happened to the banks. There is no way that even with a share holding of 2/3% in a bank would that shareholder understand all the risks that bank was taking – this is more a directors duty. Kevin Geeves
No: Trustees do not have the skills, resource and time to do this. Shona Harvie
