Pressing on Pay: Next Shareholders Strongly Support Living Wage Resolution

May 23, 2025

By Daniel Kehoe

A shareholder resolution at clothing retailer Next requesting action on low pay secured 26.01% votes in favour and the company now has six months to directly respond to investor concerns.

Due to the strength of support for the resolution, the company must consult investors on their qualms and outline how they expect to respond, including any actions that will be taken to address issues around low page and wage transparency.

Including abstentions 29.23% of votes went against Next’s Board of Directors, which had recommended that their shareholders vote against the proposal.

The proposal, backed by co-filers including AXA Investment Managers, Scottish Widows, Friends Provident Foundation and the Church of England Pensions Board, called for greater transparency around Next’s process for wage-setting, as well as a clear evaluation of paying the real Living Wage.

The efforts of this coalition have been rewarded. The votes in favour meet the UK Corporate Governance Code’s stipulation that any resolution receiving more than 20% opposition obliges the company to consult the shareholders who voted against management, understand their concerns and report back within six months.

The Company has already agreed to increase their wage transparency in their next annual report in 2026. They will also provide a formal update in November 2025.

As the proposal received over 20% of votes in favour it will now qualify for the Investment Association’s public register, a tool used by shareholders, asset managers and analysts to track investor dissent.

This helps to promote corporate accountability, better engagement between companies and shareholders, and further highlight how companies respond to significant shareholder opposition.

This attention is likely to intensify the scrutiny of assets managers, such as Norges Bank Investment Management and APG in the Netherlands who recommended a vote against the proposal. It is also worth noting that Minerva’s Governance Report analysis indicated the proposed resolution could have significant material benefits for the company and its shareholders if enacted, such as improved employee retention and increased company reputation.

A proposal of this nature showcases the growing disconnect between executive pay and employee wages. ShareAction had previously filed a similar claim in 2022 at Sainsbury's, where they requested that the Company become an accredited Living Wage employer by gaining official recognition from the Living Wage Foundation by 2023.

While this proposal received 16.25% votes in favour, it failed to obtain the 20% threshold due to opposition from Schroders, ultimately preventing it from qualifying for the Investment Association’s public register.

It will be interesting to see if this vote was in fact a turning point for social proposals and whether we see a similar pattern at the 2025 Marks & Spencer’s and JD Sports’ upcoming AGMs. Shareholders, including asset managers, should now be more than aware that social issues are gaining traction, as investors are no longer staying silent and are looking to voice their concerns more veraciously than in previous years.

Minerva’s blog focuses on the latest developments in ESG investing and stewardship. Minerva is a global provider of sustainable stewardship solutions with over 25 years of expertise. Minerva empowers investors by providing essential tools, including ESG research and data, enabling them to navigate the intricate landscape of stewardship and proxy voting, whilst ensuring their decisions are well-informed and aligned with sustainable principles.

You can read more of our articles by clicking here.