Two-strike rule improves board engagement: AMP Capital
AMP Capital has found that company responsiveness and board engagement has improved with the Government's introduction of the two-strike rule.
According to AMP Capital head of environmental, social and governance (ESG) research Ian Woods, before the introduction of the rule AMP's concerns about remuneration fell on "deaf ears".
"However this AGM season we've seen a dramatic increase in the number of companies seeking to engage with us," he said.
Increased scrutiny of remuneration reports had also opened up opportunities to discuss other governance issues over the annual general meeting (AGM) season, he said.
"This has provided an opportunity to not only get a greater insight into a company's priorities through more transparent remuneration structures, but also to raise other important issues," he said.
Woods said that as a large shareholder, AMP Capital had a responsiblity to be on top of a broad range of issues - including management of talent, environmental risks and sustainable practices - in the companies they invest into and own.
AMP Capital, via its bi-annual corporate governance report, found that gender diversity had increased on company boards since 2010.
The number of companies that lack female representation on their boards has dropped from 60 per cent in 2010 to 39 per cent at the end of 2012.
"Since 2010, there has been clear evidence that progress has been made with regard to increasing the gender diversity of listed company boards of directors," Woods said.
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