PIRC (the consultancy that provides corporate governance advisory services to certain institutional investors) has published the 2022 edition of its Shareholder Voting Guidelines. The guidelines set out PIRC’s views on good corporate governance for listed companies. They cover a wide range of issues, including board composition, director remuneration and corporate reporting.
The 2022 edition of the guidelines include new details on PIRC’s expectations in relation to companies’ management of the transition to net zero and the resilience of business plans to climate change. In particular, PIRC expects climate governance to be integrated into a company’s risk management. On diversity, the guidelines set out that PIRC will recommend voting against the re-election of the nomination committee chair of any FTSE 100 company that fails to meet the recommendations of the Parker Review on ethnic diversity. For FTSE 250 companies which fail to disclose their progress on the Parker Review recommendations, PIRC will recommend abstaining on the vote to re-elect the nomination committee chair.
The guidelines are not available on the PIRC website, but copies can be ordered for a fee via the website.