By Simon Jessop LONDON, April 22 (Reuters) - UK pension investor Nest plans to oppose the re-election of BP Chair Albert Manifold at the company's annual meeting on Thursday, it said on Wednesday,
Nest to Vote Against BP Chair Amid Concerns Over Shareholder Engagement
UK Pension Investor Challenges BP Governance and Shareholder Rights
By Simon Jessop
Background to Nest's Opposition
LONDON, April 22 (Reuters) - UK pension investor Nest plans to oppose the re-election of BP Chair Albert Manifold at the company's annual meeting on Thursday, it said on Wednesday, citing board actions that it said risked limiting shareholder engagement.
Shareholder Resolution Exclusion
Those include the exclusion from the meeting of a shareholder resolution proposed by activist Follow This, asking for more disclosure on how BP's strategy would stand up under scenarios of declining demand for oil and gas.
Retirement of Climate Reporting Resolutions
Other steps include a move to retire two previous resolutions requiring company-specific climate reporting, backed by more than 97% of shareholders, and a proposal for virtual AGMs, which could reduce transparency and oversight, Nest said.
Investor Expectations and Governance Concerns
"Investors look to the Chair to safeguard governance and shareholder rights. In this instance, that expectation has not been met," said Diandra Soobiah, director of responsible investment at Nest.
Nest's Stake in BP
Nest held about 40.5 million pounds ($54.7 million) in BP stock at the end of March.
BP's Response to Investor Concerns
"Following extensive engagement with our largest investors we are fully focused on building a simpler, stronger and more valuable BP. That's why we are making these recommendations, to provide transparent, standardised disclosures that support clear comparisons across companies," BP said in a statement.
Exchange Rate Information
($1 = 0.7406 pounds)
(Reporting by Simon JessopEditing by David Goodman)
