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Fashion retailer Primark could face a shareholder revolt next week, after a new bonus scheme could see CEO George Weston receive up to £7m in bonuses.
According to The Telegraph, Primark’s parent company Associated British Foods (ABF) is “under fire” from shareholder advice group Pirc over a new long-term bonus scheme.
Pirc argue the changes to the long-term bonuses scheme mean they would exceed its recommended maximum and has called on shareholders to vote against the changes at the ABF’s meeting next month, as earlier this month it was revealed that ABF was to slash executive pensions following a backlash from its shareholders.
A spokesperson for ABF told Retail Sector: “ABF takes a long-term approach to remuneration, aiming to reward the management for delivery of performance that will bring value to our shareholders over the long term. We set very demanding internal targets and review performance against those.
“Glass Lewis and ISS have both recommended shareholders vote in favour of all resolutions, including the remuneration policy. We have used the opportunity of our policy review to take an even more fundamental look at the Long Term Incentive Plan (LTIP) structure, its link to how we want to drive the businesses and considered feedback from shareholders.”
It was revealed that Weston’s base salary currently sits at £1m.
Finance chief executive John Bason, could also receive up to £4m, on top of his base salary of £720,000. ABF also raised the pay of employees by 3.5% last year, as they posted a 2% increase in revenues to £15.8b, as Primark accounting for £7.7bn.
Retail Sector has contacted Primark for comment.
