In today’s post, we shall examine a concept that we have examined a number of times before here in Financial Regulation Matters , and that is the concept of ESG, or more accurately the integration of ‘E’nvironmental, ‘S’ocial, and ‘G’overnace concerns in relation to business. Today’s post focuses on two stories in particular, and uses them as a vehicle for examining some merging debates around this ever-growing sector. We looked over the summer at the story that Nissan had admitted to falsifying some of its emissions-related data , which naturally should lead us to think of the sector-defining Volkswagen scandal , a scandal which will leave a massive mark on one of the industry’s powerhouses. In line with those developments, Audi was fined €800 million last Tuesday for similar transgressions, ranging from 2004 to 2018 . There are, of course, a number of issues and variables that are affecting the auto industry at the moment, but for our discussion surrounding the concept of ESG,...

Today’s post looks at a subject that has been the focus for many of the posts in Financial Regulation Matters and that is Executive Pay. In recognition of the ever-increasing issue of executive pay despite poor performance, the blog has analysed a number of issues in this field, ranging from BP recently cutting the pay packet of its CEO to Credit Suisse vowing to increase the bonuses it pays to its leading managers . However, as discussed in a post dating back to the 9 th of February, there is an undercurrent of unrest amongst shareholders that is slowly but surely beginning to shape the atmosphere amongst big business. In this post, the focus will be on reviewing the latest tranche of stories coming from the world of big business in relation to executive pay and, ultimately, the post will discuss how the trajectory of this movement to affect the pay packages of some of the leading business figures may continue. The first firm that will be worth discussing is Bunzl , the mul...

According to statements being made by the leading British institutional investors recently, this year’s AGM season will be characterised by an increased amount of investor-activism when it comes to Executive pay. The Church of England, in leading the Church Investors Group , has vowed that exorbitant pay deals in companies that it is invested, will not be tolerated. Furthermore, leading institutional investors like BlackRock – the world’s biggest fund manager – and Standard Life have also warned companies that they are on alert for excessive pay packages. This level of increased scrutiny is in reaction to an era where excessive risk taking and irresponsible practice was being rewarded with some headline-grabbing pay packages, like that given to banking chiefs during and since the Financial Crisis. Additionally, it has been reported that the level of bonus payments in the U.K., more generally, are rising to their highest levels since the Crisis. However, institutional investor...