Shareholders large and small are expected to deliver a bloody nose this week to four FTSE 100 companies — Marks & Spencer, Burberry, British Land and Sainsbury's — over controversial executive pay packages, underlining how out of step Britain's top boardrooms are with investor sentiment on the issue of blockbuster payouts.
Pirc, the governance advisory group, has recommended members vote against executive remuneration packages at the companies, describing the deals as "excessive", setting "unchallenging performance targets", and "not being in the company's long-term interest".
With the City's annual meeting season in full swing, institutional shareholders have already signalled they are in combative mood. Two weeks ago a Tesco shareholder vote revealed 47% of the ballot registering objections to the supermarket group's executive pay deals — either casting their ballot against the company's remuneration resolution or actively abstaining. It was one of the biggest pay protests in corporate history.
A week earlier, 22% of voting shareholders at WPP had similarly shown their dissatisfaction with the advertising group's boardroom pay packages.
http://www.guardian.co.uk/business/2010/jul/11/shareholders-rebellion-expected-exec-pay
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