Corporate Britain is bracing for a pivotal year, with boardrooms and investors set for a series of high-stakes confrontations over executive pay and strategic direction. The recent retreat by mining giant Anglo American on a contentious pay vote serves as a potent opening act for 2026.
Anglo's Pay Retreat and the 'Naughty Step' Dilemma
Fresh from sealing its monumental $60bn merger with Canada's Teck Resources and seeing off BHP's takeover bid, Anglo American found itself in an awkward spot this December. The company, chaired by the widely respected Stuart Chambers, was forced to withdraw a shareholder resolution at the last minute. The vote could have secured multimillion-pound payouts for executives from incentive schemes.
The move came amid clear signals that the resolution would be defeated, handing the board a significant rebuke. This incident throws a spotlight on the ongoing tension in UK boardrooms, perfectly framed by a recent comment from London Stock Exchange chief executive Julia Hoggett. She argued that if one company faces investor revolt on pay it's a "naughty step," but if many do, it becomes a "play date," suggesting a systemic issue with UK pay competitiveness.
Hoggett has been a vocal proponent for a more permissive stance from institutional investors, claiming FTSE-100 companies lose top talent to global rivals who pay more. The Investment Association's decision to scrap its register of companies facing 20%+ shareholder dissent has further emboldened remuneration committees. As dozens of FTSE firms, including Anglo, consult on new pay policies in 2026, the scale of protest votes will test whether Hoggett's analysis is correct.
Breakdown Duopoly: AA and RAC Owners Eye 2026 Exits
In another major corporate story, the private equity backers of Britain's two roadside recovery giants are mapping their exits for 2026. The owners of the AA and RAC, which together serve roughly 29 million customers, are exploring sales or stock market listings.
Warburg Pincus (AA) and the consortium of CVC Capital Partners and Silver Lake (RAC) are timing their moves as winter callouts surge, highlighting the firms' essential service. This duopoly operates in a market with stable, recurring revenues and significant potential to use AI and customer data for cross-selling.
Of the two, the RAC is likely to move first, having made stronger inroads into the home car-care market via remote telemetry. Its owners reportedly favour a flotation, though this may give pause to investors who recall the AA's troubled period as a public company, which ended with a debt-heavy takeover in 2020. While the AA's balance sheet is now healthier, a private sale may be a more sensible route than a return to the public markets.
Government Steel Strategy Delayed Amid Crisis
Meanwhile, the government has pushed the publication of its crucial UK steel strategy into early 2026, a delay that industry watchers find unsurprising but dangerous. Business minister Chris McDonald confirmed the postponement, stating the government remains committed to the sector.
Behind the scenes, the appointment of investment bank Evercore to advise on the government's financial exposure suggests a colder, more logical approach is being applied. There is now growing realism in Whitehall about a potential combination involving at least two of the UK's remaining steel producers: British Steel and Speciality Steels UK.
Such a merger would be complex, given British Steel's effective state control and Speciality Steels being run by advisers to the Official Receiver. With the industry in crisis, further delays to a robust, long-term strategy could prove fatal for this foundational sector.
