LSE attacked over share option plan

Two leading corporate governance bodies yesterday attacked the London Stock Exchange's new share-option plan, calling it deficient.

Manifest, which advises pension funds on shareholder voting issues, criticised the LSE for awarding options that vest over time, rather than according to performance criteria, and for making the scheme available to Don Cruickshank, the non-executive chairman.

Pensions and Investment Research Consultants, another voting issues agency, said: "This is contrary to widely-considered best practice. Our advice to clients would undoubtedly be negative."

But the LSE said the provisions for Mr Cruickshank were a technicality, and it "would not expect" to award options to non-executives.