Reckitt heads for a pay row
Nurofen maker Reckitt Benckiser faces a major headache this week as investors line up a big protest against the £23m pay package prepared for its chief executive Rakesh Kapoor.
Reckitt’s annual meeting on Thursday is expected to mark another skirmish in this year’s rowdy corporate governance season in which BP, Anglo American and Shire have already been humbled by large-scale investor protests.
Mr Kapoor is the second-highest paid boss in the FTSE 100 after WPP’s Sir Martin Sorrell, who last week defended his £70m pay packet for the year. According to the shareholder advisory service Manifest, the total of pay and incentives awarded to him or due to be under Reckitt’s proposed remuneration policy since his appointment in 2011 now stands at £139m.
Sarah Wilson, Manifest chief executive, said Reckitt’s remuneration committee, “should be asking whether they are overpaying”.
Royal London fund managers have already signalled they will oppose Reckitt’s plans. “Whilst Reckitt Benckiser has provided consistent growth for shareholders, its pay awards for executives consistently pushed the boundaries of acceptability,” said Ashley Hamilton Claxton, its corporate governance manager.
Hermes EOS, which has £154.7bn of assets under advice, is understood to be gearing up to join the protests against Reckitt’s pay and remuneration policy and is expected to finalise its objections early this week. Other top investors have indicated they will join the protest.
Standard Chartered could also find itself in the firing line of shareholders. Royal London is voting against the bank’s remuneration report because of high pension payments to bosses, although it will vote in favour of the binding pay policy, in part because bonuses were scrapped when the bank made a loss in 2015. Legal & General Investment Management has also put concerns to the board behind the scenes to influence pay awards.
Meanwhile, governance group Pensions & Investment Research Consultants (PIRC) has criticised pay at Aldermore Bank.
Chief executive Philip Monks received total remuneration of £7.3m, in large part because he can now sell shares given in the years before its flotation in 2015. PIRC called the awards “highly excessive”.
Nurofen maker Reckitt Benckiser faces a major headache this week as investors line up a big protest against the £23m pay package prepared for its chief executive Rakesh Kapoor.
Reckitt’s annual meeting on Thursday is expected to mark another skirmish in this year’s rowdy corporate governance season in which BP, Anglo American and Shire have already been humbled by large-scale investor protests.
Mr Kapoor is the second-highest paid boss in the FTSE 100 after WPP’s Sir Martin Sorrell, who last week defended his £70m pay packet for the year. According to the shareholder advisory service Manifest, the total of pay and incentives awarded to him or due to be under Reckitt’s proposed remuneration policy since his appointment in 2011 now stands at £139m.
Sarah Wilson, Manifest chief executive, said Reckitt’s remuneration committee, “should be asking whether they are overpaying”.
Royal London fund managers have already signalled they will oppose Reckitt’s plans. “Whilst Reckitt Benckiser has provided consistent growth for shareholders, its pay awards for executives consistently pushed the boundaries of acceptability,” said Ashley Hamilton Claxton, its corporate governance manager.
Hermes EOS, which has £154.7bn of assets under advice, is understood to be gearing up to join the protests against Reckitt’s pay and remuneration policy and is expected to finalise its objections early this week. Other top investors have indicated they will join the protest.
Standard Chartered could also find itself in the firing line of shareholders. Royal London is voting against the bank’s remuneration report because of high pension payments to bosses, although it will vote in favour of the binding pay policy, in part because bonuses were scrapped when the bank made a loss in 2015. Legal & General Investment Management has also put concerns to the board behind the scenes to influence pay awards.
Meanwhile, governance group Pensions & Investment Research Consultants (PIRC) has criticised pay at Aldermore Bank.
Chief executive Philip Monks received total remuneration of £7.3m, in large part because he can now sell shares given in the years before its flotation in 2015. PIRC called the awards “highly excessive”.
Posts
0 коммент.:
Post a Comment