Updated Corporate Governance Policy and Voting Guidelines were published by the National Association of Pension Funds ("NAPF") on 8 December 2014. These guidelines reflect the current market best practice, and aim to ensure that the management and board of its members are held accountable to their shareholders.

Since its 2013 Guidelines, the following significant changes have been made:

  • The board's view on key strategic and operating risks, such as governance and reputational risks, must be included in the accounts;
  • A coherent and consistent remuneration policy is emphasised, and it is specifically stated that the policies for executive remuneration should not be inconsistent with the general remuneration policies of the company;
  • A high importance is placed on shareholder engagement – the board should be accessible to shareholders, and should have an established procedure to effectively deal with their concerns;
  • Abstention is no longer generally advocated.

The latest NAPF Corporate Governance Policy and Voting Guidelines are available at: http://www.napf.co.uk/PolicyandResearch/DocumentLibrary/~/media/Policy/Documents/0418_NAPF_corporate_governance_po licy_voting_guidelines_2014_2015_DOCUMENT.pdf.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.