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What does it mean by 'binding votes'? Their powers to vote down executive remuneration policies increased when binding votes came into force.
Aug 7, 2018 2:59 PM
Answers · 1
Votes that should be taken into account and cannot be ignored. Evidently, it's about the rules governing approval of remuneration policy of listed firms. Previously shareholders were able to vote on executive pay packages (directors' remuneration) every year, their votes were not binding, so in theory the board could ignore the vote. According to new rules a firm's remuneration policy requires the approval of more than 50% of shareholders for a policy to pass.
August 7, 2018
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