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LGIM warns firms to treat employees fairly

employees_governanceLegal & General Investment Management is increasing its efforts on sustainability and governance issues, saying that it expected firms to treat employees fairly.

Sacha Sadan, director of investment stewardship at LGIM, said, “In these unprecedented times, we are reminded of how interconnected the world is – but also that sustainability, good governance, and fair treatment of employees will be the building blocks of a better future.”

Last year, the London-based firm opposed the election of more than 4,000 company directors in a bid to make “long-term change” in the companies and markets it invests in.

LGIM also took sanctions against 11 companies called out as laggards in its Climate Impact Pledge, according to the report.

The London-based firm said it opposed 35% of pay packages globally and voted against at least one resolution at 71% of companies, due to concerns about the suitability of directors or auditors, pay or company strategy.

Sadan added: “Especially in testing circumstances, diverse boards can better challenge and support companies. We need directors to be able to focus on the significant responsibilities of their roles by not serving on too many boards, and to have the right checks and balances – including, crucially, not self-regulating as joint chair/CEO.”

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