'Shareholder spring' revolt over fat cat pay poised to gather pace
Anger over boardroom pay will explode again this week as further investor rebellions demonstrate the "shareholder spring" of unrest continues unabated.
Cookson, the FTSE 250 engineering group, and online gaming firm 888 are in the immediate line of fire. Both companies are braced for chunky votes against their pay policies when they stage annual meetings on Wednesday and Thursday respectively.
Several bigger firms are fighting a rearguard action against investor concerns over how much they have awarded bosses. HSBC has begun consulting shareholders to try to calm worries over the pay package of almost £8m handed to chief executive Stuart Gulliver. WPP, the advertising giant, has gone on the defensive over boss Sir Martin Sorrell's near-£13m pay deal. The shareholder spring has so far claimed the scalps of three high-profile bosses at Aviva, Britain's largest insurance company, drugs giant AstraZeneca and Trinity Mirror, publisher of the Daily Mirror and The People. Pendragon, the car dealer, was stung by a revolt last week.
At Cookson, Nick Salmon, the chief executive, is under fire for a long-term pay plan that handed him £7m despite shares in the firm, which makes parts for gadgets such as the iPad, underperforming peers. At 888, the flashpoint has been caused by a generous bonus awarded to Aviad Kobrine, the finance director. The Association of British Insurers has issued "red top" warnings to its members on both the companies.
Vince Cable, the business secretary who is pressing for the investor vote on boardroom pay to be made binding, also wants companies to disclose more information about their use of remuneration consultants who advise directors on how to craft pay deals and performance targets..
The Trades Union Congress says the government needs to do more than just make voting decisions binding to ensure that pay is set at more realistic levels. It wants workers to be invited to sit on the committees that set top remuneration.
- 1 Morgan Freeman on the riot-focused coverage of the Baltimore protests: 'F**k the media'
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 4 Frankie Boyle on Scottish independence: 'In the Interests of Unity, F**k Off'
- 5 Length of pregnancy can vary by up to five weeks, scientists discover
Boston Marathon runner's search for mystery man she kissed ends with letter from his wife
Saudi Arabia's King Salman sacks senior aide for 'slapping' a journalist behind him live on TV
Frankie Boyle on Scottish independence: 'In the Interests of Unity, F**k Off'
Italian police 'reveal' what Jesus looked like as a young boy
Florida couple forced to register as sex offenders for having sex on public beach
In defence of liberal democracy
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
General election live: SNP suspends two members for disrupting Labour rally
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
Andy McSmith's Sketch: Feisty audience is the real star of an enlightening show
iJobs Money & Business
£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...
£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...
£215 per day: Ashdown Group: Junior Project Manager (website, web application ...
£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...