Pirc to savage utility perks
Saturday 25 May 1996
Pirc, the Pensions and Investment Research Consultancy which advises many of the largest City fund managers, is set to take the water and electricity companies to task over plans to reward their directors with long-term bonus and share schemes it regards as unacceptable under the terms of the Greenbury Report.
Many of the privatised utilities are set to hold their annual meetings in July when they will propose schemes that will result in windfall bonuses for performances Pirc sees as only average.
Pirc has already campaigned against 16 such schemes proposed by companies such as Shell and Inchcape, though shareholders have still voted in favour of them.
Pirc will call for polls to vote down the Pru and HSBC schemes when they hold their annual meetings on Wednesday and Friday respectively.
Pirc issued a statement yesterday criticising the HSBC scheme which it sees as the most outrageous to date.
Under the terms of the proposals directors could qualify for shares to the value of four times salary which would cost the company pounds 10m-pounds 16m if certain performance targets are met.
Pirc said the scheme included a "jackpot effect" rather than a graduated scheme. "If you meet the criteria the whole lot falls into your lap," Pirc's Anne Simpson said.
Pirc is holding a seminar next month to discuss more acceptable methods of rewarding directors. It wants to see arrangements that enable all staff, not only the directors to participate.
It criticised companies such as Grand Metropolitan and BOC for operating several share option and bonus schemes that are difficult for shareholders to understand.
Pirc was set up in 1986 and offers investment advice to 32 pension funds which include Sainsbury and British Gas, as well as six investment managers which control pounds 120bn of funds between them. Its income is derived from the fees for this advice.
Emergency call 'started off dumb, but got pretty serious'
Britain First criticised for using actress's memory to draw attention to their 'hate-filled home page'
Thought you'd seen it all after the Jeremy Paxman interview?
Greatest mystery about the hit BBC1 show is how it continues to be made at all, writes Grace Dent
"History is violent," says the US Army tank commander Don "Wardaddy" Collier
Striker's four-month ban for biting an opponent expires on Friday
Argentinian scored 'rabona' wonder goal for Tottenham in Europa League – see it here
- 1 This 'woman calls police to order pizza' story isn't going where you're expecting
- 2 Watch what happened when food critics were unknowingly served McDonald's
- 3 Jimmy Carr's controversial Oscar Pistorius joke goes a bit too far at the Q Awards
- 4 Ottawa shootings: Bruce MacKinnon's cartoon is the perfect tribute to soldier Nathan Cirillo
- 5 Of course, teenage girls need role models – but not like beauty vlogger Zoella
Isis releases first video showing the stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
This 'woman calls police to order pizza' story isn't going where you're expecting
FCKH8: YouTube reinstates provocative anti-sexism video showing young girls swearing
Diwali: What is the festival of lights – and how is it celebrated around the world?
Jimmy Carr's controversial Oscar Pistorius joke goes a bit too far at the Q Awards
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
Attacks on 'Ukip Calypso' show how skewed people’s priorities are
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...
£100 - 125k: Guru Careers: A CTO / Chief Technology Officer is needed to join ...
Competitive (DOE): Guru Careers: A COO / Chief Operating Officer is needed to ...