Darty chief to face battle over pay deal
Watchdog urges shareholders in embattled electical retailer to block CEO's 'golden hello'
Darty, the struggling electrical retailer, is set to be the latest to face a battering over executive pay at its forthcoming annual meeting thanks to the substantial “golden hello” handed to chief executive Thierry Faleque-Pierrotin.
PIRC, the corporate governance watchdog which advises some of Britain's biggest pension funds, has urged them to oppose the company's remuneration report over the award of 772,681 shares to Mr Faleque-Pierrotin in January, worth nearly £370,000 at yesterday's closing price of 47.75p.
Investors were under the impression that such an award would not be made given current difficulties. Its 2009, the Annual Report indicated that a performance condition had been attached to the share award which has not been met. But, on Friday, Darty said the report contained an error and the only condition Mr Faleque-Pierrotin had to fufill was to remain with the company for three years.
The share value has plunged in recent years. They were still above £3 at the end of 2007 and traded at above £2 in early 2008. Since then, it has been a rout. They were buffeted at the beginning of the year thanks to a poor Christmas and a brief recovery has petered out.
The company recently rebranded itself as Darty – the name of its main French chain – and dropped the title “Kesa Electrical” after the sale last year of its beleaguered British business, Comet, to a private equity firm for a nominal £2.
In a regulatory announcement on Friday, it said Mr Falque-Pierrotin gave up option and stock entitlements linked to his previous employment worth at least €775,000 (£616,000) when he joined the company.
“The remuneration committee, as part of his recruitment package, agreed at that time to compensate Mr Falque-Pierrotin through a one-off conditional share award, with the only condition to vesting being his continued employment with the Company for three years.
“The 2009 Annual Report and Accounts erroneously stated that a TSR performance condition also applied; this was not the case,” Darty said in a statement.
But PIRC remains critical. Its report into Darty says: “We continue to recommend opposition to the remuneration report as PIRC does not support the use of 'golden hellos' as they only serve to undermine the retention aspect of all bonus schemes. This recommendation would normally be made at the time the payment was made, however, as it was originally disclosed as a payment under the Performance Share Plan subject to Total Shareholder Rerturn performance this was not possible. We are therefore expressing our concern on the matter on this year's remuneration report.”
The company's AGM will be held on 13 September.
- 1 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 2 The secret report that helps Israel hide facts
- 3 Is Ebola coming to Britain? UK health officials issue warning to doctors as outbreak fears grow
- 4 Richard Dawkins says 'date rape is bad, stranger rape is worse' on Twitter
- 5 Danish TV reporter is all business up top, all party down below
The secret report that helps Israel hide facts
A day in the life of Vladimir Putin: The dictator in his labyrinth
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
- < Previous
- Next >
iJobs Money & Business
£350 - £400 per annum + competitive: Orgtel: Project Manager (specializing in ...
£25000 per annum + OTE £40,000: SThree: Orgtel are seeking Graduate Trainee Re...
£45000 per annum + Benefits: Ashdown Group: ** HR Business Partner - Senior H...
£28000 - £32000 per annum + Benefits: Ashdown Group: PA / Team Secretary - Mat...