Eight companies have been named by the National Association of Pension Funds (NAPF) for failing to address concerns from investors regarding remuneration packages.

According to the NAPF's latest AGM season report, Capital & Counties Properties, easyJet, FirstGroup, Lonmin, Mitie Group, Ocado Group, Ophir Energy and SVG Capital received criticism from their investors over proposed pay for directors.

This is despite the fact that last year they were identified as part of a group of 28 companies in the FTSE 100 and FTSE 250 that were subject to significant investor concern on the issue of remuneration.

The NAPF said that it looked in particular at those companies which received successive years of dissent on remuneration, which was defined as more than 20% dissent in 2013 and more than 15% dissent again this year.

Concerning the eight companies, NAPF corporate governance policy lead Will Pomroy said: "To receive significant shareholder dissent on remuneration one year might be regarded as a misfortune, but to do so a second year really does not reflect well.

"We urge all those firms whose shareholders have so clearly signalled their dissatisfaction this year to begin in earnest a conversation to resolve the concerns well ahead of next year's AGM season."

He added: "While it is important to understand what and how a director is being paid, it is equally important to understand why that is appropriate. The intention behind the new reporting requirements is to explain this 'why' and encourage fruitful dialogue between companies and their shareholders about what delivers sustainable performance."

First published 18.09.2014

monique_simpson@wilmington.co.uk