The Pensions and Lifetime Savings Association (PLSA) has published its Stewardship & Voting Guidelines 2023. The guidelines set out the PLSA's views on key issues and its voting recommendations on those issues.
Key areas covered by the 2023 Guidelines include:
- Workforce – a new section addresses how companies should approach issues such as employee wellbeing (including mental health support), workforce diversity and tackling modern slavery;
- Executive remuneration – the PLSA reiterates its call for restraint when setting executive remuneration in light of the on-going cost of living crisis and the economic pressures being experienced by the wider workforce;
- Climate – climate change continues to be an area of focus. In particular, the PLSA notes that growing attention is being paid to transition plans, which should be underpinned by credible targets, with clear interim milestones and accountability mechanisms; and
- Diversity – the guidelines note the recent updates from the FTSE Women Leaders Review and the Parker Review, and the new requirements of the Listing Rules to report against diversity targets (for more information on the Listing Rule requirements, see our snapshot here). The PLSA expects disclosure in relation to any obstacles or delays to achieving diversity goals and details of how the background of directors standing for re-election help shape the board's diversity.
Appendix 1 to the guidelines summarises the PLSA's voting recommendations on the issues covered by the guidelines.
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