(Thursday 15th May) Reacting to the results of the vote for the low pay resolution at Next’s annual general meeting today, Catherine Howarth OBE, Chief Executive at ShareAction said:
“Today’s vote sends a tough message to the Board of Next and the entire retail sector – clearly, investor concern is rising around the problem of retailers underpaying staff and the effects this is having on their business and workers.
“This is a serious level of support for resolutions of this kind and Next is now legally obliged to respond to this resolution and clarify how it will act on investors’ concerns. We look forward to engaging the company based on a new level of transparency around low pay, a key step to better protecting all its staff with a real Living Wage.
“Major national and international pension funds and other responsible investors have demonstrated they want to see action to drive up standards around pay across the retail sector. We urge shareholders to continue to support the resolutions co-filed at JD Sports and M&S which will go to a vote later this summer.”
Heather Taylor, Director of Finance and Resources at Trust for London, said: "The results of the vote send a clear signal that pay transparency and disclosures are an important step for Next to take, we hope this sends a message to the wider retail sector and look forward to engaging with Next going forward."
Charlie Crossley, Investment Engagement Manager at Friends Provident Foundation said: "Today's vote signals investors want retailers to address the transparency gap around wage practices. It is now clear Next should provide more meaningful disclosure on their policies for low paid workers, a crucial step toward ensuring workers can meet the cost of living. Sector-wide progress is required, which is why investors also pursuing similar resolutions this year at other major retailers."
ENDS
Notes to editors
The full breakdown of voting results is as follows: 26.9% voting in favour of the resolution and 73.1% against the resolution. The total votes against management, including votes in favour of the resolution and abstentions, comes to 29.2%.
The Next resolution was supported by 102 individual investors and institutional investors including Axa Investment Managers, Epworth Investment Management, Friends Provident Foundation, Greater Manchester Pension Fund, Scottish Widows and Trust for London.
Shareholders also disclosed support for the resolution leading up to the vote including the Church of England Pensions Board, CalPERS, CalSTRS and EdenTree Investment Management.
The full wording for the resolution and an investor briefing with more information can be found here.
Established by the Living Wage Foundation, the real Living Wage is the minimum hourly rate necessary for workers to afford housing, food, and other basic needs. The new real Living Wage rates for 2024/25 are £12.60 per hour in UK (up from £10.90) and £13.85 per hour in London (up from £11.95).
The Good Work team at ShareAction harnesses the power of shareholders to tackle income inequality and in-work poverty. Our investor group engages some of the biggest publicly owned companies to ensure everyone has access to decent work. This means a guaranteed Living Wage and a secure contract that ensures workers have enough to meet their everyday needs.
ShareAction is an NGO working to shape a world where the financial system serves our planet and its people. We mobilise global investors to use their influence to drive up labour standards, tackle climate change, protect the natural world, and improve people’s health. We push policymakers to ensure the financial system is working in the best interests of society. We work with people to create a movement for change. Visit shareaction.org or follow us @ShareAction to find out more.
