The Pensions and Lifetime Savings Association publishes topical questions to aid trustees in considering the effectiveness of their managers’ stewardship activity. We encourage funds to ask these questions during their regular manager reviews in an effort to understand their managers’ approaches and activities and to ensure that they are adhering to the stewardship policies.
February's topical question for your Manager
Background: The Carillion affair has raised the question of sustainable dividend payments and executive accountability over pay, after the company collapsed, despite making substantial dividend payments in previous years, and the executives were able to keep bonus payments made in previous years.
Question: Do you quiz companies over the sustainability of their dividend payments, and insist on clawback procedures in the event of Carillion-related failures? Can you provide examples of how clawback procedures have been successfully applied at companies you invest in?
Find more questions for your manager here.