TravelGuides – Foxtons to Cineworld: four firms getting a bloody nose over executive pay | Executive pay and bonuses

TravelGuides – Foxtons to Cineworld: four firms getting a bloody nose over executive pay | Executive pay and bonuses

Investors have been giving firms a bloody nose in latest weeks by staging rebellions over what they take into account extreme executive pay packets in the course of the pandemic.

Several firms have additionally confronted a backlash over the choice to pay executives massive bonuses whereas receiving authorities help funded by the taxpayer. Here are a number of the companies which have been within the highlight.

Foxtons

More than four in 10 of the London property agent’s shareholders failed to again its plans to award a near-£1m bonus to its chief executive concurrently the agency was refusing to pay again hundreds of thousands of kilos of presidency help.

Foxtons had acquired virtually £7m in authorities furlough cash for employees and enterprise charges aid on the time of the vote.

Almost 40% of its traders voted in opposition to the corporate’s remuneration report in April, and a additional 5% abstained, which is commonly thought-about a protest vote. The vote was not binding, nonetheless, and Foxtons mentioned Nic Budden would nonetheless obtain the payout.

The influential investor advisory service Glass Lewis had really useful shareholders vote in opposition to Foxtons’ remuneration report due to “excessive granting practices in light of Covid-19”. There was “no reason as to why the company could not reduce the bonus to nil”, it mentioned

Morrisons

Morrisons trolleys
Morrisons’ £9m executive pay and bonus awards have been rejected by 70% of traders. Photograph: Tolga Akmen/AFP/Getty Images

The grocery store confronted one of many largest shareholder revolts lately final month, when 70% of traders voted in opposition to its executive pay awards.

Morrisons determined to award £9m in pay and bonuses to its chief executive, David Potts, and his two most senior managers in a 12 months when the retailer’s earnings halved due to additional prices incurred in the course of the pandemic. Despite the dimensions of the protest vote, it isn’t binding, and the grocery store mentioned the executives supposed to acquire their awards.

Morrisons, like different meals retailers, benefited from the federal government’s enterprise charges vacation in the course of the pandemic at a time when their gross sales have been boosted by the closure of cafes and eating places.

XPO Logistics

The US-owned supply and warehousing agency, which handles parcels for retailers together with Asos and Marks & Spencer, got here in for criticism after it handed multimillion-pound bonuses to its executives whereas receiving UK authorities help.

Shareholders rejected the Connecticut-based firm’s pay plan on the annual assembly in May, on the recommendation of unions and the shareholder advisory organisation Pirc. The vote was non-binding, however investor rebellions are sometimes considered as embarrassing for the corporate on the receiving finish of a protest vote.

XPO Logistics paid $6.4m (£4.6m) in money bonuses for 2020, simply over half of which ($3.3m) was paid to Brad Jacobs, the corporate’s chief executive and chair. Other high bosses additionally acquired greater than $27m in share choices.

XPO, which employs greater than 25,000 individuals within the UK, additionally claimed between £12m and £25m in furlough help via six of its UK subsidiaries between December 2020 and February, in accordance to HMRC information. XPO didn’t personal two of the companies till January 2021 however the claims continued after that time.

Cineworld

Shareholders within the UK’s largest cinema chain expressed their displeasure on the massive reward packages handed to executives in the course of the pandemic. Twenty-eight % of traders failed to help a controversial reward scheme that would lead to high bosses being awarded greater than £200m in share awards if the corporate’s shares returned to pre-pandemic ranges.

Thousands of Cineworld employees have been furloughed whereas its 127 UK cinemas have been closed.

TravelGuides – Foxtons to Cineworld: four firms getting a bloody nose over executive pay | Executive pay and bonuses