UK Labour Government Orders Closure of Shareholder Revolt Register Amid Controversy
The UK Labour government has ordered the closure of the public shareholder revolt register, which was launched in 2017 under former Prime Minister Theresa May to publicly name and shame firms facing shareholder rebellions at their annual general meetings over executive pay and governance issues.
The Treasury, led by Chancellor Rachel Reeves, directed the Investment Association to shut down the register as part of a broader initiative aimed at cutting red tape to boost economic growth.
The High Pay Centre has warned that this move reduces transparency and may make it more difficult to track investor dissent, potentially burying such data within company filings and weakening accountability.
Data shows that around 26% of FTSE 100 companies have experienced shareholder rebellions concerning executive pay in the past three years, with over 20% opposition considered a rebellion.
City groups, including the London Stock Exchange, lobbied for the register's closure, arguing that negative publicity over executive remuneration harms business competitiveness and the attractiveness of UK listings.
Supporters of transparency argue that the register helped highlight remuneration concerns and encouraged improvements in governance. Its removal risks diminishing scrutiny of pay and company strategy.
Government officials maintain that the corporate governance code already ensures transparency for investors, saying most institutional investors will remain unaffected by the closure. However, concerns persist that retail investors will lose access to centralized information and the ability to compare trends across different sectors.
