Pay packet backlash
Executive bonuses in the US have received record low support from investors this year after moves to loosen performance targets during the pandemic backfired.
So far in 2021, shareholder support for US executive bonuses is at its lowest since 2011, the year that "say on pay" votes were made mandatory. While pay votes are not binding, they can be damaging to companies. From 2017 to 2019, most companies that failed pay votes underperformed the S&P 500 and their sector peers, according to Morgan Stanley.
Assets under management in exchange traded funds (ETFs) are eclipsing traditional index-tracking mutual funds for the first time, after the global passive investment industry vaulted past $15-trillion in assets last year. ETFs stood at $7.71-trillion under management at the end of last year — narrowly behind index mutual funds at $7.76-trillion — according to data compiled for the FT by the Investment Company Institute.
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