Aberdeen Asset Management faces opposition to ratification of its executive remuneration report and policy at its annual meeting from the Florida State Board of Administration and Ontario Teachers' Pension Plan.
The $175.4 billion Tallahassee-based FSBA in addition plans to vote against Hugh Young, global head of equities, as a director on Aberdeen's board, as well as opposing the election of other directors.
The Florida board and the C$129.5 billion (US$119.3 billion) Toronto-based OTPP plan to vote against both the company's remuneration report and policy, which sets pay for top executives, according to their proxy-voting disclosures.
OTPP is “concerned that the structure of the plan places too much emphasis on short-term results, the pension plan said in a statement in part, adding, “until the company implements a long-term incentive plan, we are not comfortable supporting the remuneration report.”
The FSBA, in addition to opposing Mr. Young, is voting against the election of Martin J. Gilbert, who is CEO, and Roger Cornick, chairman. FSBA is also opposing the election of independent directors Julie Chakraverty and Anita Frew.
The Ontario plan, along with the $176.4 billion California State Teachers' Retirement System, West Sacramento, is supporting all the directors. In addition, CalSTRS plans to vote in favor of both the remuneration report and policy, according to its proxy-voting disclosure.
Glass Lewis, a proxy-voting advisory firm, recommends its clients vote against both the remuneration report and policy, citing “poor overall design,” while Institutional Shareholder Services, also a proxy-voting advisory firm, recommends clients vote in favor of both remuneration proposals.
Both advisory firms recommend clients support all the directors for election.
The annual meeting of Aberdeen, which has £200.4 billion ($300 billion) in assets under management, is Jan. 16.
Aberdeen manages $883 million in emerging markets equities and $133 million in frontier markets equities for the FSBA, said John Kuczwanski, FSBA communications manager.