London, April 24, 2026, 17:06 BST
- Shares in Legal & General slipped 0.81% to 252.60p/252.65p after going ex-dividend for a 15.67p final payout on April 23.
- Legal & General shareholders head to a May 21 vote covering pay policy, the climate plan, board seats, and several other AGM items.
- On that same day, shareholders will also vote on a capital reduction—a move aimed at increasing distributable reserves, though it won’t lead to an immediate cash payout.
Shares of Legal & General Group Plc edged lower Friday, with the FTSE 100 insurer now trading without rights to its final dividend. Investors are also eyeing the May vote on executive pay and capital flexibility.
Timing is crucial here. Legal & General, under Chief Executive António Simões, is working to reassure income investors even as the 190-year-old firm undergoes a major reset. The group has set out plans for a £1.2 billion buyback and is committing to 2% dividend growth for 2025—making cash returns front and center in its investment story.
Investors get another crack at assessing that strategy during the May 21 AGM. Shares took a hit following the March results—Reuters pointed out that L&G missed certain earnings targets and disclosed a drop in its Solvency II ratio, the key gauge of capital strength for insurers.
Shares dipped on Friday, AJ Bell data showed, as the stock moved ex-dividend. Investors holding as of April 24 are set for the next payout: a final dividend of 15.67p a share, scheduled for payment on June 4. Anyone buying in after April 24 misses out on this round.
According to Company AGM documents, shareholders are set to vote on Resolution 17, covering the directors’ remuneration policy, and Resolution 18, the annual remuneration report. The board, for its part, is urging support for every resolution, the notice states.
On Friday, Graeme Evans at Interactive Investor reported the new pay policy bumps the cap on long-term incentive awards—stock tied to multi-year goals—from 300% up to 400% of base pay. For Simões, though, the 2026 grant lands at 350%. His base salary stays put at £1.2 million. The article put his 2025 total pay at £3.1 million.
The pay vote drops into a broader UK boardroom argument. Out of 55 FTSE 100 firms Deloitte surveyed, 29% are now pushing for hefty bumps in executive-director incentive packages. “Retain and attract the best people”—that’s how Mitul Shah, a partner at Deloitte’s Executive Remuneration and Reward practice, put it. Deloitte
Legal & General is asking shareholders to sign off on a capital reduction at an upcoming general meeting. The step would see £1.05 billion taken out of the share premium account, and £24.6 million from the capital redemption reserve, bumping up retained earnings by roughly £1.08 billion. The company emphasized that net assets won’t be trimmed, nor is there any direct capital return on the table for shareholders.
Core operating profit came in at £1.62 billion for the firm, a 6% increase. Earnings per share on a core operating basis hit 20.93p, marking a 9% rise. Pension risk transfer deals totaled £11.8 billion worldwide—£10.4 billion of that from the UK alone.
Matt Britzman, senior equity analyst over at Hargreaves Lansdown, called the market response “a little harsh” in a note after the results. Still, he flagged the importance of lifting asset management profits—key for L&G as it pivots toward more fee-based income and looks to move away from its heavier capital insurance business. Hargreaves Lansdown
Aviva remains the benchmark here. Back in March, Reuters pointed out that since Simões stepped in at the helm of L&G at the start of 2024, the stock barely budged—shares stayed mostly flat. Meanwhile, Aviva surged roughly 44%, and the broader FTSE 100 climbed 34% in that stretch.
Simões is ramping up efforts abroad. Speaking to Reuters last week, he said L&G wants to push Asia assets under management to roughly $500 billion—doubling the current figure—with the firm “very bullish on Asia right now.” Reuters
But plenty of risk lingers. If the solvency ratio disappoints, pension risk transfer demand turns volatile, or asset management progress stalls, investors’ patience with both payout and strategy could run thin. Plus, the capital cut still faces a hurdle: it requires at least 75% of shareholders to back it, and needs a court sign-off before anything happens.
