Some of the UK’s biggest companies face investor revolts over executive pay in the coming weeks as a stormy AGM season gets under way
Some of the UK’s biggest companies are facing investor revolts over executive pay in the coming weeks as the stormy AGM season gets under way.
FTSE 100 groups, including Barclays, Rolls-Royce, Unilever and Ocado, could see fierce shareholder opposition to their bosses’ salary packages as many clients and staff grapple with cost-of-living tightness.
Shareholder advisory group Glass Lewis encouraged investors to oppose Barclays’ remuneration report at its meeting on May 3, flagging what they say “regards remuneration practices.”
Facing the music: FTSE 100 groups including Barclays, Rolls-Royce, Unilever and Ocado could see stiff resistance from shareholders to their bosses’ salary packages
A key point was the company’s decision to allocate “substantially” more shares to executives as part of its 2020 stimulus plan after stocks recovered from a sharp drop in the early days of the pandemic – an event that Glass Lewis said prompted could lead to ‘windfall’. ‘profits rather than results of business acumen.
For Rolls-Royce, Glass Lewis said the recruitment benefits offered to boss Tufan Erginbilgic, which included a 29 per cent increase in his base salary to £1.25 million plus equity incentives worth £7.5 million, were ‘excessive’.
Glass Lewis said it had “serious reservations” about new Unilever boss Hein Schumacher’s base salary, which, at more than £1.6 million, was 18.5 per cent higher than his predecessor’s. Unilever’s AGM will take place on 3 May.
Fellow advisory group ISS recommended that shareholders oppose Ocado’s pay report at its May 2 AGM amid ongoing complaints about the company’s stock-awarding policy.