Michael Meacher MP

The economic news this last week has been all agog at this sudden surge of shareholders in revolt.   The insurer Aviva’s CEO, Andrew Moss, had his proposed remuneration package rejected by 54% of the shareholders, as had RBS, Shell & GlaxoSmithKline in recent years.   The Aviva shareholders certainly had enough to complain about.   Since Moss took over in 2007, revenues fell by 19% and profits by 16%, the dividend slumped 21% and the share price by no less than 62%.   Yet total executive pay over the same period ballooned by 90%.   Shareholders were therefore outraged at the proposal to award him another £46,000 plus a £2.2m ‘golden hello’ package for another board member joining from another company.  So what effect did this majority revolt against pay excess have?   Zilch, because when New Labour introduced the shareholder vote a decade ago, they made it voluntary, not binding. (more…)