Latest news with #FTSE350
New Statesman
16-07-2025
- Business
- New Statesman
Britain's billionaire tax problem
Rachel Reeves gives the Mansion House speech on 15 July (Photo by) After last night's Mansion House speech, in which Rachel Reeves promised an audience of City financiers that she would reduce regulation of financial services and encourage risk-taking by investors, the Public Accounts Committee has released a report this morning which suggests the state isn't doing the greatest job of taxing the wealthiest in society. 'HMRC does not know how many billionaires pay tax in the UK or how much they contribute overall,' the report finds. This sounds bad. It will certainly lead to even louder calls for a wealth tax from the left of the Labour Party and groups such as Patriotic Millionaires. But does HMRC need to know who's a billionaire? Campaigners will doubtless be incensed by the revelation that 'HMRC has no overview of an individual's total wealth,' and that 'despite the relatively small number of individuals and significant sums of money involved', HMRC can't identify how much tax billionaires in the UK pay. But the point of HMRC is to implement tax law, and because the UK does not currently have a wealth tax, it does not actually have a duty to target billionaires specifically. What the PAC's report really shows is not that HMRC is allowing billionaires to get out of paying tax, but that a wealth tax targeting billionaires would be very difficult to implement. HMRC's job is to target activity – income from work or the sale of assets – rather than assessing how rich individuals are and trying to tax them on that basis. The reason for this is that it is much easier to identify taxable events than it is to identify taxable assets. As the report also notes, hundreds of billions of pounds' worth of those assets are held offshore, behind structures that make their ownership unclear. The easier option is to tax them when they're sold. Implementing a wealth tax of (for example) 1 per cent on assets over £10 million would require HMRC to do regular full market valuations of the assets of tens of thousands of people. Many of them would dispute they were as rich as HMRC claimed, and rightly so. After all, the 52-week range in value for the FTSE 350 index is over 15 per cent. Someone who is a billionaire in March might be a piddling centimillionaire by June. New perverse incentives might be introduced – such as the incentive to devalue the value of your company stock at a certain point each year to minimise your wealth tax liability. The more direct 'wealth taxes' that are collected in the UK are on property ownership – council tax and business rates – and are therefore not actually collected by HMRC, but by local authorities. One option for taxing wealth more would be to simply allow councils to add new council tax bands at higher rates for bigger properties. HMRC has (as the PAC's report also notes) made significant gains in the tax it collects from wealthy individuals. I have reported extensively on HMRC's failings and am only too happy to point out when it doesn't know something that it should. But in this case, HMRC has no need to know how much a poorly defined group of 'billionaires' contributes – and until the tax system changes, it has no need to do so. Subscribe to The New Statesman today from only £8.99 per month Subscribe [See also: The OBR is always wrong] Related
Times
09-07-2025
- Business
- Times
Young directors face fight to get on board at London-listed firms
London's biggest listed companies are hiring more women on to their boards but have been criticised for their reluctance to appoint younger directors. Of the 305 new directors hired by FTSE 350 companies last year, only 12, or 3.9 per cent, were under 45, according to research from Heidrick & Struggles, the executive headhunter, which called on businesses to 'bring in more fresh faces'. 'Boards should reflect the world their businesses operate in, and this can be achieved through a broader mix of people and experience,' Kit Bingham, head of UK board practice at Heidrick & Struggles, said. • 'Wrong lanes' hold up boardroom progress for women and minorities More than half, 57 per cent, of those joining the board of a FTSE 350 company last year were retired and the average age of new appointees increased to 58, the highest in six years. Heidrick & Struggles' research showed that London-listed companies 'remain slower to look to younger appointees' when compared with other countries. In Ireland, for example, 21 per cent of board directors hired by Dublin-listed businesses were younger than 45. In Germany the proportion was 8.2 per cent and it was 5.4 per cent in France. 'Times are tough and have been for a few years, so what I think we're seeing is a default to experience,' Bingham said. 'Equally, at a time when companies are trying to keep costs down, chairs are very careful to keep the board lean and don't want to expand the board just to give different individuals their first taste of board life.' He added: 'It is important that boards hear from a whole range of different voices; how different generations are thinking, acting and buying.' UK companies are, however, faring better when it comes to recruiting more female board directors. Half of last year's appointees on the FTSE 350 were women, compared with just 36 per cent of Fortune 500 companies in the US and 46 per cent in Germany. Heidrick & Struggles said there had now been 'five years of strong gender balance', even if last year's percentage was down on the high of 58 per cent set in 2022. The research shows that 21 per cent of new UK directors last year identified as non-white. The Parker Review suggests that FTSE 350 boards should have at least one director from an ethnic-minority background, although Bingham cautioned against adopting a 'one and done philosophy'.
Telegraph
27-06-2025
- Business
- Telegraph
The UK stock market is vastly more attractive than the US on this essential metric
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest. It's not often the UK stock market outperforms its United States counterpart, but for investors seeking income, home soil is the place to be. Even after surging 6pc higher since the start of the year, the FTSE 350 index still yields an attractive 3.5pc, more than twice as much as the S&P 500. Moreover, around a third of mid and large-cap UK shares currently offer yields in excess of 4pc. Income seekers can therefore build a diverse portfolio of stocks that together produce a significantly higher yield than the wider index. As the FTSE 350 is internationally focused, its constituents are well placed to benefit from an upbeat long-term global economic outlook. The impact of interest rate cuts across developed economies has yet to translate to GDP growth and corporate profitability, which should mean that improved dividend growth is ahead – with shareholder payouts from UK-listed stocks likely to rise at a faster pace than an increasingly modest rate of inflation. Given the income appeal of mid and large-cap UK shares, exposure to them will continue to form the backbone of our income portfolio, which leads to the Edinburgh Investment Trust as our latest addition. Around 94pc of its assets are currently invested in FTSE 350 stocks, with popular income investing names such as Shell, Unilever and GSK being among its major holdings.
Mint
19-06-2025
- Business
- Mint
Big Pay Packages Spark Growing Dissent Among UK Shareholders
Shareholder dissent over executive pay at British companies is rising just as firms seek to bolster pay packages to remain internationally competitive. Three times as many companies faced opposition from more than 20% of shareholders so far this year compared with the same period in 2024, data from proxy-solicitation firm Georgeson Inc. shows. With investors having already voted on remuneration reports from more than half of FTSE 350 companies, 16 faced dissent exceeding 20% between Jan. 1 and May 31 this year, up from five in 2024, the data shows. 'Last year, FTSE 350 companies were more conservative in recommending higher levels of pay, which led to high shareholder support and low levels of opposition,' said Daniel Veazey, Georgeson's corporate governance manager. Pay packages of UK-based chief executive officers have grown faster this year than those of US rivals, with companies racing to close the gap to attract and retain top talent. The median FTSE 100 CEO package increased 7% to £4.79 million in 2024, according to Deloitte. 'UK Plcs are feeling freer to propose new remuneration policies designed to remain competitive with US and EU peers,' said Sonia Gilbert, Clifford Chance's incentives partner. London Stock Exchange Group Plc came up against a shareholder revolt at its annual meeting on May 1, with 31% voting against the company's remuneration report, which saw CEO David Schwimmer take home £7.9 million in its latest financial year. Consumer giant Unilever Plc also faced close to 30% opposition against new boss Fernando Fernandez's base salary, which was just modestly short of his predecessor's. UK companies are challenging the status quo a little more this year, encouraged by widespread shareholder support in 2024 and relaxed Investment Association guidelines on pay, Georgeson's Veazey said. Of 55 FTSE 100 companies that had published their fiscal 2024 reports, 24 were seeking shareholder approval for new remuneration policies, compared with 16 at the same time last year, research by Deloitte in April shows. Of those proposing changes, more than 40% submitted their policies ahead of the usual three-year cycle. British American Tobacco Plc CEO Tadeu Luiz Marroco could earn as much as £18.2 million this year under a performance-related policy, a jump from the £6 million he earned in 2024. Compass Group Plc's Dominic Blakemore also stands to benefit from a proposed maximum payout of £15.3 million in 2025, up from the £9.5 million he earned in total last year. Both maximum figures are based on a 50% increase in the stock awards from the date of grant to vesting. These proposals highlight 'the need to attract top talent in a competitive global market and address pay compression challenges,' said Mitul Shah, a partner at Deloitte's executive remuneration and rewards practice. The UK government's decision to maintain the removal of the cap on banker bonuses has gone some way to bridging the transatlantic gap. Bank of America Corp. is the latest to join a slew of rivals in scrapping the crisis-era limit. Some of the world's biggest banks are pushing UK regulators to accelerate plans to ease rules around deferred bonuses so they can apply the lighter regime to payouts for 2025. This follows long-time calls by executives including London Stock Exchange CEO Julia Hoggett that restrictions on pay were hindering companies' efforts to attract game-changing candidates and undermining the attractiveness of the City of London. Performance, especially in sectors with key competitors in the US and a tight market for talent, will ultimately steer how amenable shareholders are to boosting compensation. 'It comes down to the right shareholder engagement,' Clifford Chance's Gilbert said.
Yahoo
17-06-2025
- Business
- Yahoo
NextEnergy Solar Fund Ltd (LSE:NESF) Full Year 2025 Earnings Call Highlights: Navigating ...
Gross Asset Value: Above GBP1 billion. Net Asset Value (NAV): GBP547.4 million, with a NAV per ordinary share of 0.951p. Cash Income: GBP73.2 million generated during the year. Dividend Target: 8.43p per share for FY25-26, with a yield of approximately 12%. Debt Gearing: 29.7% excluding preference shares; 48.4% including preference shares. Dividend Payments: GBP49.2 million paid in dividends. Share Buyback Program: GBP11.2 million spent, purchasing over 15 million shares. Debt Reduction: GBP59.5 million reduced, including GBP46.8 million in short-term revolving credit facilities. Energy Generation: 830 gigawatt-hours generated, 5.3% below budget. Operating Assets: 101 assets totaling 937 megawatts of installed capacity. Capital Recycling Programme: GBP72.5 million raised from asset sales, with a NAV uplift of 2.76p per share. Warning! GuruFocus has detected 2 Warning Sign with LSE:NESF. High Yield Dividend Stocks in Gurus' Portfolio This Powerful Chart Made Peter Lynch 29% A Year For 13 Years How to calculate the intrinsic value of a stock? Release Date: June 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. NextEnergy Solar Fund Ltd (LSE:NESF) has delivered 11 consecutive years of fully cash-covered dividends, demonstrating strong income generation and disciplined capital management. The company maintains a high dividend yield of approximately 12%, one of the highest in the FTSE 350, supported by a robust revenue base. NESF's portfolio includes 101 operating solar and battery storage assets, contributing to diversification and long-term growth potential. The company has successfully expanded internationally and into the energy storage sector, enhancing revenue streams and future-proofing the portfolio. NESF has a strong governance framework with an experienced and independent Board, ensuring transparency and accountability in operations. NESF's shares have been trading at a significant discount to net asset value, averaging around 27%, reflecting broader market trends and investor sentiment. The company's net asset value decreased due to declining power price forecasts and lower-than-expected generation, impacting valuations. The Capital Recycling Programme has been slower than anticipated due to a challenging M&A environment, affecting capital recycling speed. There are concerns about unplanned grid outages and their impact on generation performance, which could affect future revenue stability. The macroeconomic environment, including rising interest rates and regulatory changes, poses challenges to maintaining investor interest and share price stability. Q: Can you explain the strong irradiation performance despite last year's weak solar irradiation data? Also, what caused the 5.3% below-budget performance in asset generation, and have there been improvements in FY26? A: Irradiation budgets are set at the project's outset and updated annually. March was particularly strong, recovering much of the year's gap. The below-budget performance was due to network outages and weather-related challenges affecting asset components. Despite this, the portfolio delivered a 1.1 times cash-covered dividend. Improvements are ongoing for FY26. Q: With unplanned grid outages, do you expect more grid spending to reduce these? Also, how might thermal pricing impact your PPA portfolio? A: Increased grid spending is expected to improve stability over time, though it's a long-term process. We account for some yield curtailment in forecasts. Regarding thermal pricing, we anticipate a neutral to positive impact due to our portfolio's distributed nature. We await government updates on REMA for further clarity. Q: What were the key drivers behind the GBP3.1 million revaluation decrease in NextPower III? A: The revaluation was due to updates in the power sales strategy of one of the assets within NextPower III, which impacted its valuation. Q: Can you comment on the recent Foresight rumors and whether strategic options will be considered before appointing a full-time Chair? A: We can't comment on market rumors, but the Board is exploring all avenues to increase shareholder value, including corporate transactions and restructurings. We are working with external advisors to model future scenarios independently. Q: Why has the share buyback program paused, and is the investment management fee being reduced? A: The buyback program paused due to recent share price strengthening and capital allocation considerations. We are in active discussions with the Board regarding the fee structure to align with investor outcomes. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
