The high street retailer WH Smith has been plunged into a major pay row with investors amid heightened tensions over boardroom rewards as Britain grapples with a deepening crisis over pressure on household bills.
Sky News has learnt that three of the main proxy advisers which issue guidance to City shareholders ahead of annual meetings have signalled their opposition to a £550,000 bonus for Carl Cowling, WH Smith’s chief executive.
A substantial proportion of investors are expected to vote against both the company’s remuneration report and pay policy at next Wednesday’s AGM.
The revolt threatens to turn WH Smith into the year’s first big target of a ‘fat cat’ pay row, even as listed businesses anticipate demands to show restraint amid soaring energy bills and other living costs.
City insiders said this weekend that the retailer’s decision not to repay money received under the government’s furlough scheme and still award a sizeable bonus to Mr Cowling had infuriated a number of institutional shareholders.
WH Smith is one of Britain’s biggest retailers, with approximately 1100 shops in high street and travel locations across the UK.
In a report to clients, the voting advisor, Glass Lewis, said: “While we acknowledge that the company has taken certain measures to ensure the appropriateness of executive remuneration outcomes in the context of the broader stakeholder experience, we remain concerned by the decision to pay annual bonus awards to executives given the receipt of COVID-19 related government support during the year under review.
“In line with market best practice expectations, we consider it inappropriate for executives to receive bonus awards where funds of this nature have been availed of but not repaid, as was the case here.”
A major revolt will raise uncomfortable questions for WH Smith’s board, which has put non-executive director Maurice Thompson up for re-election despite him having been chairman of Greensill Capital, the…
Source : skynews
