Latest news with #shareholderrevolt
Sky News
05-06-2025
- Business
- Sky News
British Airways-owner IAG braced for turbulence over pay
The owner of British Airways (BA) is the latest in a string of blue-chip London-listed companies to face investor unrest this year over its executives' multimillion pound pay packages. Sky News has learnt that International Airlines Group (IAG) is braced for a shareholder revolt at its annual meeting on June 18 over a remuneration policy that will include a one-off share award potentially worth more than £2.7m to Luis Gallego, its chief executive. Institutional Shareholder Services (ISS), the influential proxy voting adviser, has recommended that investors vote against the award, which would vest based on a three-year performance period ending in 2028. The share windfall would be in addition to Mr Gallego's salary, annual bonus and regular incentive award. "The one-time award is tied to operating margin performance above the company's medium-term ambition," ISS said in a report to clients which has been seen by Sky News. "The company states that this proposal aims to align the CEO's compensation package with senior management, address pay compression, enhance competitiveness, and bring the CEO's pay closer to comparable FTSE peers. "While the company's rationale is noted, material concerns are identified with the concurrent operation of the one-time award and the existing RSP [restricted stock plan], particularly as no reduction has been made to the RSP opportunity." Remuneration policy votes are binding on companies, although the level of opposition that IAG was facing was unclear. Since the disruption caused by the Covid pandemic, IAG's performance has recovered strongly, with the company reporting stronger-than-expected first-quarter profits last month. On Thursday, shares in IAG were trading at around 331p, giving the company a market capitalisation of more than £15.7bn.
Times
08-05-2025
- Business
- Times
Revolt at British Gas owner over boss's £4.3m pay
The owner of British Gas suffered a shareholder revolt at its annual meeting as almost 40 per cent of Centrica's investors who voted opposed the group's executive pay. At the meeting in Manchester, 39.98 per cent of votes went against approving Centrica's annual remuneration report, which sets the pay for top directors. The remuneration of directors at Centrica has been in the spotlight in recent years because of the earnings of Chris O'Shea, its chief executive. O'Shea was paid £4.3 million last year, about half of what he earned in the previous 12 months, including bonuses and share-related pay. However, his annual basic salary rose 29 per cent year-on-year to £1.1 million. Last year O'Shea told the BBC that his salary was 'impossible to
Daily Mail
08-05-2025
- Business
- Daily Mail
Centrica revolt over fat cat pay as 40% of shareholders vote against latest hikes to directors' salaries
Centrica has been rocked by a shareholder revolt over executive pay. Nearly 40 per cent of votes cast at the energy firm's annual general meeting were against rewards to directors. The British Gas owner faced criticism for how much it pays chief executive Chris O'Shea. He was handed £4.3million last year as his basic salary was topped up by bonuses and perks. This was about half of the £8.2million he earned in the previous 12 months. He then received a £245,000 pay rise last month, taking his basic salary for this year to £1.1million. O'Shea, who has previously said his pay is 'impossible to justify', could earn as much as £5.9million once bonuses and other awards are included. The April 1 rise came in on the day the typical household energy bill increased 6.4 per cent, or £111, to £1,849. Nearly 40 per cent of shareholders went against approving the annual remuneration report. Mel Evans, head of climate at Greenpeace UK, said: 'You know the profiteering has gone too far when even the shareholders start rejecting the bumper pay rises.' Centrica said: 'We acknowledge the outcome of the vote relating to the directors' remuneration report. 'While we welcome the backing of the majority of our shareholders following extensive engagement on remuneration, we will continue to engage with shareholders in constructive and open dialogue. 'The company will provide an update to shareholders within six months.' Shareholder proxy adviser Institutional Shareholder Services reportedly recommended against supporting his pay packet. It said: 'The salary positioning and manner in which the increase has been implemented is not considered to be supported by cogent rationale.' O'Shea told the BBC in 2024 there was 'no point' trying to justify his pay package, when at the time many of his customers were struggling with high energy bills. Companies including Unilever and Melrose have faced similar shareholder revolts over pay in April. Tesco chief's £1m cut The boss of Tesco received a £1m pay cut last year – but still scooped £9.2million. Ken Murphy, 59, chief executive of Britain's biggest supermarket, saw his pay packet fall by 10 per cent, but he still receives 373 times what a typical Tesco worker gets. Last year, Murphy said: 'I absolutely accept that I'm well paid.' He added his deal was 'delegated' by shareholders, and two-thirds of it was reliant on his ability to hit long-term targets. Murphy said last month that Tesco is ready to take a £400million hit to profits this year as the competition in the industry intensifies. Profit rose 10.6 per cent to £3.1billion in the year to February 22 as it won business off rivals.
The Independent
08-05-2025
- Business
- The Independent
Shareholders in British Gas owner Centrica rebel over top directors' pay
Centrica faced a shareholder revolt on Thursday over executive pay, after nearly 40% voted against its directors' pay packets at the energy firm's annual general meeting. The British Gas owner has faced criticism for how much it pays chief executive Chris O'Shea in recent years. Mr O'Shea was paid £4.3 million last year, about half of what he earned in the previous 12 months, including bonuses and share-related pay. But his annual basic salary rose 29% to £1.1 million. At the meeting in Manchester, 39.98% of shareholder votes went against approving Centrica's annual remuneration report, which sets the pay for top directors. A spokesperson for Centrica said: 'The board appreciates the support shown by shareholders for the resolutions at today's AGM. 'We acknowledge the outcome of the vote on resolution two relating to the directors remuneration report. 'While we welcome the backing of the majority of our shareholders for that resolution following extensive engagement on remuneration, we will continue to engage with shareholders in constructive and open dialogue. 'The company will provide an update to shareholders within six months of today's meeting.' The vote comes after shareholder proxy adviser Institutional Shareholder Services (ISS) reportedly recommended against supporting his pay packet. Sky News reported earlier in May that ISS had told clients the pay rise was 'materially above those given to the wider workforce'. ISS said: 'The CEO's salary positioning and manner in which the increase has been implemented is not considered to be supported by cogent rationale.' Mr O'Shea told the BBC in 2024 there was 'no point' trying to justify his pay package, when at the time many of his customers were struggling with high energy bills. He said at the time that 'you can't justify a salary of that size'. It comes after companies including Unilever and Melrose were struck with similar shareholder revolts over director pay in April.
