Pensions giant Fidelity International has warned company boards that they face investor revolts if they try to pay bonuses without first handing back government support.
The firm has written to FTSE 350 companies warning it will vote against lavish pay packages if they have used coronavirus support schemes, such as furlough, and have not repaid the cash.
Fidelity added that it wanted to see ‘a restrained approach to executive pay this year’.
Warning: Fidelity International has written to FTSE 350 companies warning it will vote against lavish pay packages
It came as German chemicals giant BASF paid its staff a £312m bonus after borrowing £1billion from the Bank of England.
The firm, which runs plants in Bradford in West Yorkshire and Alfreton in Derbyshire, said the payout to directors and other employees included a ‘recognition and appreciation’ bonus.
It said it would repay the £1billion loan this month.
The firm added it would pay out a £2.6billion dividend.
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