UK companies face scrutiny at upcoming annual meetings

The annual general meeting (AGM) season is coming up in the UK, sparking potential controversy among major companies. This year, companies like BP may face challenges due to rising protests and shareholder dissatisfaction. BP will hold its AGM outside London again this year in Sunbury-on-Thames. The company is under scrutiny for moving away from its climate goals, while still investing heavily in oil and gas projects. Additionally, investors are unhappy about recent poor share performance. There may also be a conflict with activist investor Elliott, which could make this meeting particularly tense. Many UK companies are set to hold their AGMs between April and May. Investors, both small and large, get a chance to question company leaders about various issues before enjoying the usual free sandwiches. The political landscape has changed with Donald Trump returning to the White House. His policies may impact how companies approach diversity and climate change. Some major investors are also backing away from strict climate commitments. For instance, Aviva Investors recently changed its strategy on carbon emissions, and BlackRock exited a climate change industry group after facing political pressure. Paul Hunter from Pirc shared that this year's AGM season will be challenging for responsible investors. He noted a growing trend of rolling back progress on environmental and social issues spurred by political debates, especially in the US. At BP, some shareholders are concerned that the company won't let them vote on its climate plans. Shell will also face questions from investors about its growth strategy and its commitment to climate goals. HSBC has been criticized for pushing back parts of its climate goals by 20 years, influencing its executive pay plans. Boardroom pay will be closely watched, as several companies announced large potential salaries for executives. In the past, there have been significant protests over high executive pay. AstraZeneca's CEO Pascal Soriot is one such example, with potential pay rising dramatically. As a result of the pandemic, some AGMs will continue to be held virtually or in a hybrid format. However, many believe traditional in-person AGMs provide a more engaging experience. This eventful season looks poised to bring important discussions to the forefront.