LONDON, Feb 16 (Reuters) - Fidelity International, one ofthe biggest investors in British companies, has proposed makingpowerful remuneration committee heads more accountable toshareholders.
Such a move would ratchet up pressure on company boards torein in excessive pay after rebellions at a number of firms'shareholder meetings in recent years, including BP andWPP, and comes ahead of the bulk of this year's votes.
Fidelity has recommended the chair of the committee whichsets company directors' pay be replaced if more than a quarterof shareholders oppose its plans.
The suggestion forms part of a response to a Britishgovernment review of governance and executive pay, seen byReuters on Thursday and earlier reported by Sky News, ahead of adeadline for responses to the consultation on Feb. 17.
Trelawny Williams, who heads up governance at Fidelity, saidhe supported keeping the annual vote on a company's remunerationreport as advisory only, but wanted investors to have a bindingvote on a firm's pay policy every year instead of every three.
If less than 75 percent of votes cast backed either thereport or policy, the chairman "should step down from that roleand be replaced by another director as we believe this will makeindividuals more accountable", he wrote.
Fidelity holds shares in Britain's FTSE 350companies worth more than $15 billion, Reuters data showed. (Reporting by Simon Jessop; Editing by Alexander Smith)
BP (BP.)
WPP (WPP)
