Some of the UK’s biggest companies face investor revolts over executive pay in the coming weeks as a tempestuous AGM season gets under way.
FTSE 100 groups including Barclays, Rolls-Royce, Unilever and Ocado could see stiff shareholder opposition to their bosses’ salary packets as many customers and staff struggle amid the cost-of-living squeeze.
Shareholder advisory group Glass Lewis encouraged investors to oppose Barclays’ remuneration report at its meeting on May 3, flagging what it said were ‘concerning pay practices’.
Facing the music: FTSE 100 groups including Barclays, Rolls-Royce, Unilever and Ocado could see stiff shareholder opposition to their bosses’ salary packets
A key issue was the company’s decision to award ‘substantially’ more shares to executives as part of its 2020 incentive plan after the stock rebounded following a sharp drop in the early days of the pandemic – an event Glass Lewis said could give rise to ‘windfall’ gains rather than results of business acumen.
For Rolls-Royce, Glass Lewis said the recruitment perks offered to boss Tufan Erginbilgic, which included a 29 per cent hike in his base salary to £1.25m plus share awards worth £7.5m, were ‘excessive’.
Glass Lewis said it had ‘severe reservations’ about incoming Unilever boss Hein Schumacher’s starting base salary, which at over £1.6m was 18.5 per cent higher than his predecessor. Unilever’s AGM will take place on May 3.
Fellow advisory group ISS recommended shareholders oppose Ocado’s pay report at its AGM on May 2 amid ongoing complaints about the company’s share awards policy.
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