A report from corporate governance consultants Georgeson showed a nearly 25% increase in European firms facing investor backlash over executive pay plans. In nine major markets, 37.9% of companies received over 10% opposition, up from 30.7% the previous year. Pushback was seen at companies like InterContinental Hotels Group and UniCredit.

Opposition to future pay policy surpassed that for the previous year’s pay report for the first time. Investors are challenging executive pay structures by voting against companies’ remuneration policy resolutions, including long-term incentive plans. Spain saw the biggest increase in opposition, with over half of votes contested, while 25% in the UK faced material opposition.

Louise Dudley of Federated Hermes noted objections to early vesting of long-term incentive awards and inadequate shareholding requirements for key leaders. Yousif Ebeed from Schroders emphasized the importance of performance targets and alignment between executive pay and company performance. The trend signals a more confrontational approach to challenging executive pay practices.

Read more at Yahoo Finance: More investors rebel against European firms’ executive pay plans