Good morning folks,

in today's news, IQE (LON:IQE) has promised to adjust its remuneration policy next year after 42.9% of shareholders voted against it at this year's AGM. More on this to follow.

Elsewhere, there is a holdings RNS from Tandem (LON:TND) (in which I have a long position). Jupiter has been reducing its 10% stake - I wonder is this for fundamental reasons?

Due to a lack of news flow, I can cover other topics for you - any requests? A roundup of Tesla might be fun, after the stock reached the fabled $420 level yesterday.

Timings: I will wrap this up at 12.30-13.00, as the market closes. Finished at 13.00.



IQE (LON:IQE)

  • Share price: 45.46p (-3%)
  • No. of shares: 793 million
  • Market cap: £360 million

AGM LTIP resolution voting and proposed actions

LTIPs ("long-term incentive plans") are considered to be perfectly standard devices and respectable consultants are available to advise companies on how to structure them. But I think it's difficult to find any, in real life, which are structured well.

And since remuneration is a very boring topic, few investors give it much thought. So we miss out on an understanding of how company executives are incentivised.

Shareholder dissent

IQE has noticed that 42.9% of shareholders voted against its 2019 LTIP at the most recent AGM. This is a rare level of opposition to an LTIP.

The company says it "did not anticipate any significant dissent", i.e. that the vote came as a surprise to it.

On the other hand, it was aware that ISS (a respected advisory body used by fund managers) had recommended voting against the LTIP.

Let's scroll back for a minute. The AGM took place all the way back in June. Why has it taken so long for a response?

I note that 173 million votes went against the LTIP. This says to me that some of the funds on the shareholder register (Invesco/Oppenheimer, T Rowe Price, Schroders) must have voted against it, in line with the advice from ISS.

Only about half of the total share count voted at the meeting - this is not a surprise. Most of us (myself included) only very occasionally vote at shareholder meetings.

If you agree with what…

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