The gap between the pay of chief executives of public companies and the average worker has has risen enormously over the last 30 years. It seem that fund managers as some of the most influential investors are starting to fight back. How do the fund manager's in your portfolio view this issue and do they fight for value for money as a shareholder?
BlackRock is a major shareholder in almost every company listed on the FTSE 100 and FTSE 250. It could vote against the re-election of directors if its advice is ignored. The fund manager wrote in its letter: "Where we determine that executive pay is not aligned with the best long-term interests of shareholders, we will also consider this in our voting decision for remuneration committee members' re-election." Pay packages for bosses should be "strongly linked" to "sustainable returns" over the long term, BlackRock added.