Saturday 5th September 2015
NEWS TICKER, THURSDAY, September 3rd: The Straits Times Index (STI) ended 28.3 points or 0.98% higher to 2906.43, taking the year-to-date performance to -13.63%. The top active stocks today were SingTel, which gained 0.82%, DBS, which gained 0.80%, UOB, which gained 1.40%, OCBC Bank, which gained1.13% and CapitaLand, with a 0.36%advance. The FTSE ST Mid Cap Index gained 0.55%, while the FTSE ST Small Cap Index rose 0.24% - Madrid City Hall announced it would dedicate €10m out of its 2016 budget to a "welcome plan for refugees" to include housing, integration, psychological support and legal aid, City Hall spokeswoman Rita Maestre (Ahora Madrid) said during a press conference on Thursday. Maestre said a budget had been decided upon but that specific numbers had not: "We want to welcome all those who are fleeing from war", adding that given their situation "a permanent housing solution" would be needed in the city. The Mayor of the Spanish capital, Manuela Carmena, said on Wednesday that a decision would be taken at the city government meeting today: "The city of the hug must, of course, be ready to welcome refugees" - The European Bank for Reconstruction and Development (EBRD) is joining international efforts to clean up Tunisia’s Lake Bizerte with a €20m loan and technical assistance to support the expansion and rehabilitation of the sewerage network of the Bizerte region and the rehabilitation of three wastewater treatment plants located near the lake. The EBRD’s investment is part of an integrated environmental programme aimed at de-polluting Lake Bizerte and reducing sources of pollution through investments in wastewater, solid waste and industrial effluents. This programme is labelled by the Union for the Mediterranean and is part of the Horizon 2020 Initiative, which aims to de-pollute the Mediterranean by the year 2020. The European Investment Bank is providing a €40 million sovereign loan to the programme while the European Union Neighbourhood Investment Facility is contributing a €15m grant for both capital expenditure and technical cooperation - Analysis of illicit financial flows (IFFs) by Global Financial Integrity (GFI) shows that over the period 2003-2012 the global volume of IFFs grew by more than 9% annually (. In 2012 (the most recent year for which data are available), illicit flows were estimated at close to $1trn. In response to this unfettered surge in illicit capital leaving developing nations, the UN has endorsed target 16.4 in the Sustainable Development Goals (SDGs), which commits the global community to “significantly reduce” IFFs by 2030. This UN action “represents an historic moment in development policy given that it is the first time the international community has recognized the illicit flows problem and pledged to address it,” says GFI President Raymond Baker - US Secretary of Commerce Penny Pritzker named Eduardo Leite, Chairman of the Executive Committee of Baker & McKenzie LLP, as the new chair of the US section of the US-Brazil CEO Forum. “Mr. Leite has served on the U.S. section of the CEO Forum for several years, and I am pleased that he has agreed to serve as Chairman,” said Secretary Pritzker. The new US section chair was named after the former chair, Ms. Patricia Woertz, Chairman of the Board of Directors of Archer Daniels Midland Company, submitted her resignation from the role. However, Woertz will remain a member of the U.S.-Brazil CEO Forum, and Leite will complete the current three-year term, which ends on August 13th 2016 - MarketAxess Holdings Inc. (Nasdaq:MKTX), the operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets, today announced total monthly trading volume for August 2015 of $75.5 billion, consisting of $43.7 billion in U.S. high-grade volume, $26.7bn in other credit volume, and $5.1 billion in liquid products volume. MarketAxess is providing both the reported and adjusted estimated US high-grade TRACE volumes on its website. The Company believes that the adjusted estimated volumes provide a more accurate comparison to prior period reporting.

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UK government shifts policy on executive pay

Wednesday, 20 June 2012
UK government shifts policy on executive pay Following its industry consultation, ‘Executive Pay Consultation on Enhanced Shareholder Voting Rights’, the Department for Business Innovation and Skills (BIS) has decided on a three year binding vote on future executive remuneration policy, including pay and exit pay. http://www.ftseglobalmarkets.com/

Following its industry consultation, ‘Executive Pay Consultation on Enhanced Shareholder Voting Rights’, the Department for Business Innovation and Skills (BIS) has decided on a three year binding vote on future executive remuneration policy, including pay and exit pay.

The Department for Business Innovation and Skills (BIS) has decided on a three year binding vote on future executive remuneration policy, including pay and exit pay.By making the binding vote on the remuneration policy effective for three years,  the government hopes to encourage greater dialogue on executive remunertaion between companies and shareholders. It should also encourage companies to adopt a longer term and transparent approach to their executives' pay.

This package of reforms will address failures in corporate governance by empowering shareholders to engage effectively with companies on pay. It will:

  • Give shareholders binding votes on pay policy and exit payments, so they can hold companies to account and prevent rewards for failure
  • Boost transparency so that what people are paid is easily understood and the link between pay and performance is clearly drawn
  • Ensure that reform has a lasting impact by empowering business and investors to maintain recent activism.


Business Secretary Vince Cable explains that: “At a time when the global economy remains fragile, it is neither sustainable nor justifiable to see directors’ pay rising at 10 per cent a year, while the performance of listed companies lags behind and many employees are having their pay cut or frozen.

“In January we kicked off a national debate aimed at encouraging shareholders to become more actively engaged as company owners in better aligning directors’ pay with performance. I have been greatly encouraged by the ‘shareholder spring’ and I want to see that momentum sustained. That is why I am bringing forward legislation to strengthen the powers of shareholders through a binding vote on pay,," he adds.

The government’s reforms will provide shareholders with new powers to hold companies to account, while making it easier to understand what directors are earning and how it links to company performance.

The current advisory vote gives shareholders a mechanism to register their dissatisfaction with a company’s remuneration report. “In practice, however, there has been too much reliance on investment managers to ensure consistent oversight of portfolio companies on corporate governance issues such as pay” says Aled Jones, senior consultant in Mercer’s Investments business. “Trustees need to adopt a more proactive stance by regularly monitoring their managers on how they raise strategic issues such as remuneration in their interactions with company directors. Ultimately this is about the effectiveness of board processes. Where these processes are not successful – such as when pay proposals are voted down; it is shareholders’ responsibility to understand what went wrong and take action.

The government will introduce the reforms through amendments to the Enterprise and Regulatory Reform Bill, which is currently before Parliament.

Revised, simplified regulations setting out how companies must report directors’ pay will be published at the same time. There will be a chance to comment on these regulations before they become law.

The government intends all these reforms to be enacted by October 2013.

 

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