A growing number of companies are shifting to online-only annual general meetings (AGMs), a move that critics say allows firms to avoid shareholder scrutiny. Several major organizations, including Nationwide Building Society, Santander, and defence contractor BAE Systems, have adopted fully digital formats that prevent investors from attending in person. The approach has sparked concern from campaign groups advocating for greater transparency and engagement in corporate governance.

The UK government is reportedly considering granting companies the legal authority to hold entirely virtual AGMs, following a model common in the United States. Critics argue that this development could undermine shareholder democracy by limiting direct interaction and weakening oversight. A report from the lobby group ShareAction released this week warns that fully virtual AGMs may lead to poorer decision-making and overall performance. The report highlights the example of Kraft-Heinz, the US-based owner of HP Sauce, which held an online-only AGM that lasted just 13 minutes despite shareholder questions submitted in advance and during the meeting.

Against this backdrop, Tesco’s chief executive, Ken Murphy, faces potential shareholder opposition over his remuneration package at the company’s upcoming AGM on Tuesday. The advisory firm PIRC recommends investors vote against Tesco’s pay report, which includes provisions allowing Murphy to earn up to £12 million this year following adjustments to his bonus scheme. PIRC expressed “material concerns” about the scale of executive compensation under the revised arrangements.

This development comes amid reports that rival supermarket Sainsbury’s is planning to remove the cap on the pay of its own chief executive, Simon Roberts, potentially increasing his earnings to as much as £7.3 million. The rising scrutiny of executive pay at leading UK retailers coincides with broader debates about corporate governance practices and the role of shareholders in holding management accountable.