PLSA comments on corporate governance guidelines

The Pensions and Lifetime Savings Association (PLSA) has responded to the Department for Business, Energy & Industrial Strategy’s (BEIS) update on its consultation on insolvency and corporate governance.

Caroline Escott, Policy Lead: Investment & Defined Benefit, PLSA, said: 

“When a company is in financial difficulty and decisions need to be made, it’s important the interests of all parties – including the pension scheme – are taken into account. We welcome the Government’s recommendations to support pension schemes of all shapes and sizes in their role as stewards of savers’ money, including further work to incorporate stewardship within the mandates given by pension funds to asset managers – something which the PLSA had called for. 

“We also support the Government’s ambitions to scrutinise the increasing trend for firms to produce interim dividends which, unlike final dividends, do not require shareholder approval. This is a much-needed measure to support firms and investors in achieving the right balance between dividend payments and other expenditure. We believe there is a clear relationship between good corporate governance and good outcomes for pension scheme members, and look forward to continuing to work with industry and policymakers on this issue.”

Notes to editors

The Pensions and Lifetime Savings Association Corporate Governance Policy and Voting Guidelines seek to reflect current market best practice as determined through consultation with its members. Read more about our Corporate Governance Policy and Voting Guidelines here.

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