Influencing the debate

We take action to address key themes and emerging governance and sustainability issues that could impact the value of our clients’ investments.

We are invested in thousands of individual companies around the globe, which we manage on behalf of our clients for the long term. Therefore we have a responsibility to address topics that can impact all companies. This may be done by engaging directly with companies or with governments, regulators, other investors and wider stakeholders.

Board accountability

To be successful, companies need to have people at the helm who are best equipped to create resilient and long-term growth. By voting and engaging directly with companies, we encourage a management structure that helps companies to control risks and to benefit from emerging opportunities.

Market Resilience and Long-Termism

As a long-term investor, it is essential that markets are able to continue to generate value for our clients over time. We work to prevent market behaviours that are detrimental to the value-creation of our clients’ assets.

Sustainable systems

Natural and human capital are the most vital components of every business. It is in the interest of all stakeholders that companies build a sustainable business model that is beneficial to society as a whole. In doing so, we believe companies will become more resilient to market changes and the whole market will benefit.

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Board accountability

Board effectiveness

An effective board is central to any successful company.  A board should regularly review its composition and succession planning to ensure it continues to be comprised of the right people for future success.

Recent publications related to board effectiveness:

A guide to effective employee engagement

A guide to the role of the non-executive director

A guide to climate governance

Understanding corporate culture

Board-investor Dialogue

Board Effectiveness Review

Board Tenure in United States

The Role of the Senior Independent Director

A guide to separating the roles of CEO and board chair

A guide to the role of the Lead Independent Director

A guide to the nomination of board chairs 

A guide to board effectiveness reviews

A guide to managing shareholder activism

Board Diversity

Having a diverse board can strengthen and broaden a board’s dialogue and debate, leading to better decisions for investors. We believe that having a mix of genders, ages, cultures, nationalities, experiences, skills and technological know-how is important in order to enrich the decision-making process in the boardroom.

Recent publications related to board diversity:

Improving diversity at US public companies

Debunking eight persistent myths about corporate diversity

Market insights: The importance of gender diversity

Gender Diversity on Boards

Board Independence in Japan

LGIM Sponsors New Financial’s Diversity and Culture analysis

Remuneration

The reward and incentive structures provided to management are an important mechanism to align executives with investors. We promote remuneration structures that are simple, transparent and aligned with the long-term strategy of the company.

Recent publications related to remuneration:

LGIM's Principles on Executive Remuneration

LGIM's Principles on Executive Remuneration – North America

Executive Pay - Mind the Gap