Primark owner to face investor revolt over Weston's pay?
today Nov 28, 2019
Primark’s parent company Associated British Foods could face a shareholder rebellion at its upcoming annual general meeting (AGM) amid a backlash at a proposed pay plan.
The proposed changes to the company’s long-term bonus scheme would mean CEO George Weston could receive up to £7 million in pay and perks if he reaches all performance targets. His base salary is £1 million.
Shareholder advice group Pirc warned that the proposal would take the long-term bonuses above its recommended maximum, and urged investors to oppose the resolution in a vote at the upcoming AGM next month.
It also noted that ABF is not using non-financial criteria to calculate bonuses, which has been described as “contrary to best practice”, reported the Daily Telegraph.
If approved, John Bason, chief financial officer of ABF could pocket nearly £4 million for 2019-2020. His base salary is £720,000.
In a decision to align executive pensions with other UK employees, the retail group announced earlier this month that it will cut pension contribution rates for new executive directors. However, existing chiefs will continue to be paid the same.
In light of Pirc’s warning, an Associated British Foods spokesperson said investor advisers Glass Lewis and ISS have both recommended shareholders vote in favour of all resolutions at the upcoming meeting.
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