16 Apr 2019

LGIM America Takes Clear Stances on Sustainability, Executive Pay and Board Effectiveness in 2018

Activity Outlined in 2018 Active Ownership Report Showcases Firm’s Commitment to Raising Corporate Governance Standards

Chicago, IL – April 16, 2019 – Legal & General Investment Management America (LGIMA), an investment solutions provider with over $175 billion in assets under management, took clear stances on important corporate governance issues like sustainability, executive pay and board effectiveness in 2018, as outlined in its UK affiliate LGIM’s ‘Active Ownership’ report released today. In the eighth annual edition of the report, Legal & General outlines priority governance issues, proxy voting records, company engagement details and efforts to integrate environmental, social and governance (ESG) data throughout the global organization.

Active ownership refers to the constructive engagement with companies and markets to promote governance practices that are consistent with long-term value creation. Legal & General’s approach is based on a willingness to take a leadership position and a commitment to transparency and consistency.  

“The responsibilities of asset managers have moved far beyond strictly making buy and sell investment decisions to addressing a host of complex, structural challenges like sustainability and diversity,” said LGIMA CEO Aaron Meder. “Our active ownership objective is to raise the standards, across the board, of companies and markets as a way to add long-term value on behalf of our clients.”

Below is a summary of some of Legal & General’s key votes throughout 2018:

On sustainability: supported more U.S. shareholder resolutions on climate change than any of the world’s ten largest asset managers reinforcing a commitment to disclosure
On executive pay: strengthened policies to align CEO pay with its workforce and long-term performance
On board effectiveness: opposed 337 directors of North American companies due to over-boarding concerns, encouraging board members to focus on their significant responsibility

“We take tremendous effort in being transparent about our policies, decision-making processes and current views, which is what we ask of companies,” said John Hoeppner, head of U.S. stewardship and sustainable investments for LGIMA. “There is growing scrutiny in the U.S. around proxy voting and engagement efforts, particularly given the growth of index investing. This report displays how we are using ownership rights and our influence to enhance long-term value.”
For more information, access the full and brief Active Ownership report. For more information on LGIM America and its corporate governance and ESG initiatives, visit http://www.lgima.com/.

About LGIMA: 

Legal & General Investment Management America, Inc. (LGIMA) is a registered investment advisor specializing in designing and managing investment solutions across active fixed income, index strategies, multi-asset, liability driven investment, and sustainable investment strategies  for the US institutional market. With over $175 billion in assets under management as of December 31, 2018, LGIMA is a wholly-owned subsidiary of Legal & General Investment Management US (Holdings) Inc., which is in turn, wholly owned by Legal & General Investment Management (Holdings) Ltd. (LGIM(H)). LGIM(H) also owns our affiliates Legal & General Investment Management Ltd. and LGIM International Ltd. Legal & General's worldwide assets under management are approximately $1.3 trillion as of December 31, 2018. For more information on LGIMA, visit http://www.lgima.com/.

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