AMP Limited : AMP Capital welcomes increased board engagement

AMP Capital Investors Limited

ABN 59 001 777 591, AFSL 232497

Media Release

15 JANUARY 2013

Not for release or distribution in the US

AMP Capital welcomes increased board engagement

Improved communication since the introduction of the two-strike rule has provided an opportunity for shareholders to engage in valuable discussions with boards, according to the latest AMP Capital Corporate Governance Report.
AMP Capital Head of ESG Research Ian Woods said the increased scrutiny of remuneration reports has led to improved discussions on other governance factors throughout the recent Annual General Meeting (AGM) season.
"Before the introduction of the two-strike rule, when we raised concerns with companies about remuneration often our concerns fell on deaf ears. However this AGM season we've seen a dramatic increase in the number of companies seeking to engage with us," Dr Woods said.
"This has provided an opportunity to not only get a greater insight into a company's priorities through more transparent remuneration structures, but also to raise other important issues."
Dr Woods says the increased engagement is an important part of being an active shareholder.
"As a large investor and owner of companies on behalf of our clients, we have a responsibility to engage with boards on a broad range of issues such as management of talent, environmental risks and sustainable practices," he said.
The AMP Capital 2012 full year corporate governance report also provides an update on gender diversity on boards with positive results.
The report found that in 2010, 60 per cent of boards had no women directors on them, but now this number has dropped to 39 per cent.
"Since 2010, there has been clear evidence that progress has been made with regard to increasing the gender diversity of listed company boards of directors," Dr Woods said.
The Corporate Governance Report is released twice a year and provides a summary of AMP Capital's corporate governance activity. AMP Capital takes seriously its responsibilities as an investment manager, as an agent of shareholders in companies and as a steward of its clients' assets.
The latest report includes an analysis of the 2012 proxy season, detailing the votes cast and the governance issues considered.
In 2012, AMP Capital submitted votes on over 1700 resolutions at 332 company meetings. Of these resolutions 86 per cent were supported. AMP Capital either voted against, or specifically abstained from voting on around 25 per cent of resolutions relating to remuneration reports and incentive plans.

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AMP Capital Proxy Voting Statistics (2009 to 2012):	2012	2011	2010	2009
Number of company meetings where votes were submitted	332	365	349	406
Number of resolutions voted on	1734	1827	1748	2007
Meetings where all resolutions supported (by AMP Capital)	63%	64%	69%	55%
Meetings where incentive issues considered (since 2005 includes Rem reports)	82%	79%	80%	83%
Meetings where remuneration reports considered	78%	74%	72%	71%
Remuneration reports not supported (by AMP Capital)	25%	27%	26%	37%

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