The former head of the fund managers’ trade body will this week unveil the line-up of a shareholder committee at his new investment trust as he strives to bring a new approach? to asset management.
Sky News has learnt that Daniel Godfrey, founder of The People’s Trust, will announce that Catherine Howarth, who runs the responsible investment charity ShareAction, is to chair its shareholders’ committee.
The panel, which will initially? comprise seven members, will consult with The People’s Trust’s shareholders and be entitled to demand information from the company’s board.
It will also be consulted on board nominations and any changes to executive remuneration proposals.
The shareholder committee reflects growing momentum towards more formal consultation with company investors, a trend driven by a string of corporate scandals in the wake of the financial crisis.
News of the committee’s membership will come soon after The People’s Trust launched a £125m fundraising through a listing on the London Stock Exchange and Social Stock Exchange.
Mr Godfrey, who was ousted from his role at the Investment Association in 2015 for pursuing a consumer-friendly agenda, wants The People’s Trust to focus on a transparent, long-term approach to investing.
He has frequently complained of a “plague” of short-termism in the investment industry, and pledged that his business will never pay bonuses to executives.
Up to 5% of The People’s Trust’s portfolio will be invested in social impact enterprises.
Other members of the shareholders’ committee will include Peter Parry, policy director of the UK Shareholders’ Association, and Pooma Kimis, a director of OMFIF, an independent thinktank focused on central banking and economic policy.
The appointment of the committee members is due to be announced on Thursday.
Source: Sky News