When companies hold their annual general meetings, what do shareholders really want to know about the businesses in which they are invested?
Researchers from shareholder services company Link Asset Services looked at data from the AGMs of 96 companies on both the main and AIM markets. They found most UK shareholders are untroubled by so-called ‘hot-topics’.
These topics include remuneration, the gender pay gap and Brexit. Link found these areas accounted for less than 10% of questions asked.
Instead, the company found that investors are ‘laser-focused’ on the strategy and financial performance of their companies.
A look at the questions asked at the AGMs shows that around a quarter focused on corporate strategy and 20% wanted clarity around financial performance. See table below for complete breakdown of topics shareholders sought answers on.
| Topic | Percentage |
| Corporate strategy | 23% |
| Other | 23% |
| Financial performance | 20% |
| CSR/ environment | 6% |
| Dividend policy | 5% |
| Brexit | 4% |
| Executive remuneration | 3% |
| Board composition and diversity | 3% |
| Other governance issues | 2% |
| Auditors | 2% |
| Living wage | 2% |
THE BIG QUESTION?
One area that did attract attention from investors in FTSE 350 companies concerned the environment. Link found this topic the third most popular during its focus on AGM season, although some way off the pack with just 6% of shareholders asking about environmental impact.
Georgina Morgan, director at Link Market Services, says the findings show that during these ‘turbulent times’ investors have ‘honed-in on business’ bottom-lines and ability to adapt to changing market conditions’.
Perhaps one of the most telling outcomes of this research is that around a third of AGMs finished with no questions being asked at all. Morgan says this is an area of ‘real concern’.
The solution according to Morgan is to make AGMs more ‘fit for purpose in the 21st century’ by improving communications in the run-up to meetings. If this is done, she adds ‘shareholders can be empowered to engage more actively in the process and make sure that their voices are heard’.
