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Informa facing shareholder revolt over target-free bonus scheme

Informa, the world’s largest event group, faces a rebellion at next week’s annual meeting after shareholders and advisors have expressed concern about a target-free bonus scheme and lack of investor involvement.

More than 40% of investor votes cast at the December meeting will replace the FTSE 100 Group’s long-term incentive plan with a less burdensome standard for Sir Stephen Carter and Chief Financial Officer Gareth Wright. I opposed it. However, Informa put the proposal into action.

As a result, Institute Shareholder Services and Glass Lewis are many of the leading advisors to the world’s largest asset management company, with investors from Informa’s payroll reporting and Compensation Committee chair Stephen Davidson. I suggested to investors to vote against the reelection, on June 3rd.

Two investors from the top 20 companies also expressed concern about the company’s salary to the Financial Times, citing “insufficient response to shareholder dissent.”

Legal and General Investment Management, the UK’s largest asset management company, said it would vote against the re-election of the compensation committee chair four times in a row “due to consistent issues.”

LGIM “escalated” the campaign, citing Informa’s decision to implement a compensation plan that “received great opposition from shareholders without addressing persistent concerns,” and the three members of the compensation committee. He added that he opposes the reelection of all members and the company’s compensation report.

Another top 20 shareholders said they were “likely to vote against” the company’s salary report.

Carter was paid £ 1.48 million last year. The new scheme is a restricted stock incentive that grants him 200% of his base salary for three years until 2023, or about £ 1.55 million a year, for a total of about £ 4.6 million. Wright is eligible to receive a reward of 135% of his salary.

Executive compensation is the biggest ignition point at the UK’s Annual General Meeting of Shareholders this year. Rio tinto And Cineworld The last few months have been hit by a massive rebellion.

Glass Lewis and the ISS also changed the goals of the 2018 long-term incentive scheme, which had been implemented until last year, abandoning the original earnings per share target and moving to operating cash flow generation and operating cash flow conversion in 2020. He criticized Informa for the replacement. ..

“Without these adjustments, the prize would be [for the LTIP] It would have disappeared completely. The decision to intervene to rescue the underwater award deviates significantly from best practices, even in the context of a health pandemic, “said the ISS.

Informa had a difficult year as lockdowns canceled many trade fairs and trade fairs, including the World of Concrete and the Monaco Yacht Show. The company, which is also owned by academic publisher Taylor & Francis, reports a pre-tax loss of £ 1.1 billion in 2020.

Infomercial declined to comment.

Informa facing shareholder revolt over target-free bonus scheme Source link Informa facing shareholder revolt over target-free bonus scheme

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