Major pension scheme to recommend vote against Ryanair at controversial AGM
THE Local Authority Pension Fund Forum (LAPFF) whose members advise £230bn of UK pensions has recommended that its members vote against Ryanair’s report and accounts and the re-election of chairman David Bonderman next week.
The LAPFF intends to attend next week's controversial Ryanair AGM.
In a statement, the Forum said its recommendations reflect “significant concerns about Ryanair’s treatment of its workers and handling of recurring strikes by employees”.
“These matters have highlighted long-running questions about the company’s governance,” LAPFF said.
The Forum’s members hold about £230bn of pension fund assets, it plans to attend the meeting in Dublin on 20 September and will ask the board about these issues.
LAPFF represents more than 75 local authority pension scheme funds from across the UK with combined assets of about £230bn.
Cllr Ian Greenwood, LAPFF’s chair, said: “Ryanair has failed to adequately address concerns about the company’s troubled relationship with its employees and the potential impact on its business. The company faces more strikes and allegations of poor working conditions continue to emerge. Questions about the company’s business model and governance now pose a threat to shareholder value.
“Mr Bonderman has been chairman for too long and there are significant doubts about his independence. He has failed to take a lead on employee relations and making sure customers are happy. Ryanair’s employment issues highlight long-standing concerns about governance and in particular Mr Bonderman’s oversight role as chair of the board and his ability to influence the CEO, Michael O’Leary.”
In a statement Ryanair claimed all of the resolutions that will be put to shareholders at next week’s AGM will pass.
“Ryanair shareholders will pass all AGM resolutions by a large majority this year, including the nomination of directors and chairman, as they have done in all previous years. They appreciate how fortunate we are to have an outstanding chairman like David Bonderman guide the board and the airline.”