As the year draws to a close, we summarise the approach FTSE 350 companies have taken to holding their AGMs over 2023. In conjunction with Aspect AGM, we have set out the approach companies have taken on a number of key aspects of their meetings, including where the meetings are being held, what arrangements are being made for Q&As and the level of shareholder engagement being offered.
Key trends
- The 2023 AGM season saw in-person meetings dominate once again, signifying a return to pre-pandemic practice accompanied by a general fall in the number of hybrid meetings and a continued reluctance to adopt fully virtual meetings.
- 80% of FTSE 350 companies surveyed opted for entirely physical AGMs, an increase from 2022;
- The occurrence of hybrid meetings saw a notable decrease, from 25% in 2022 to 18% in 2023;
- Only 2 companies (TUI AG and Clarkson PLC) held a fully virtual meeting.
- While 77% of companies permitted shareholders to ask questions in advance of the AGM (by email, post, text or app) few companies (17%) permitted questions during the AGM for virtual attendees via a live chat tool.
- There were 8 climate-related resolutions tabled this year, three of which were requisitioned by shareholders (BP p.l.c., Glencore plc and Shell plc). None of these received sufficient votes to pass.
- The majority of companies are yet to take advantage of the additional flexibility set out by the 2022 Pre-Emption Group (PEG) statement of principles, with only 41% of FTSE 350 companies who issued their AGM notices between November 2022 and the end of November 2023 adopting the new PEG guidelines to some extent, including the extra headroom for related follow-on offers.
- Two resolutions to approve annual remuneration reports were voted down in 2023 (Unilever PLC and Plus500 Ltd), with policies on remuneration continuing to be a hotly contested topic in boardrooms.
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This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice.
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