Abrdn shareholders should oppose finance chief’s £675k salary says proxy advisor as boss handed £800k bonus
An influential proxy advisor has urged Abrdn shareholders to vote against the asset manager’s pay report due to its new chief financial officer’s £675,000 salary, despite it matching the job he was poached from.
Glass Lewis said Jason Windsor’s “significant” base salary “would appear to exceed CFO salaries at the majority of the company’s market capitalisation peers” and noted that it is 25 per cent more than his predecessor Stephanie Bruce’s.
The adviser argued that despite Windor’s salary matching his previous job, “incoming executives should be appointed on a base salary lower than that of their predecessor”. Abrdn’s annual meeting is scheduled to take place on 24 April.
Glass Lewis’ recommendations come during a difficult period for FTSE 250 firm, which has seen its share price fall 30 per cent over the last 12 months.
Abrdn’s net outflows surged to £13.9bn in 2023, from £10.3bn in 2022. Meanwhile, its assets under management and administration slipped to £494.9bn from £500bn.
Chief executive Stephen Bird, who was handed a near £800k bonus for his performance last year, is trying to cut costs, including slashing 500 jobs, or around 10 per cent of Abrdn’s workforce, and create a more revenue streams with new products.
Windsor joined Abrdn last October after serving as housebuilder Persimmon’s CFO for just over a year. He previously held the same role at Aviva for three years, working for the insurer for 12 years in total. He was paid £675,000 in both CFO roles.
In its latest annual report, Abrdn said it based Windsor’s pay on an “assessment of what it would take to attract the required skills and expertise from the market”.
However, Glass Lewis said it could have given shareholders a “more thorough rationale” for his salary and more detail on how it stacks up against rival firms.
While Glass Lewis said it was “unable to recommend that shareholders support this proposal at this time”, ISS, another influential adviser, has backed Abrdn’s proposals.
Commenting on Glass Lewis’ arguments, Abrdn said: “Jason provides significant experience as a CFO who has spent several years working in large public companies. His appointment followed a rigorous process, including a detailed assessment of compensation that was based on a range of factors. He is already proving a valuable addition to the board and management teams.”
The news comes as more City firms hike bosses’ pay to compete with US peers, with the view that bigger bonuses and fixed would attract more talent to London and help reverse a recent dearth of dealmaking and capital markets activity.