C&W investors urged to block directors’ pay
The plan, which also came under fire from a top 10 shareholder, has led to a “red top” alert from the Association of British Insurers (ABI), its most serious warning indicating a breach in corporate governance best practice. ABI members own 15 per cent of the UK stockmarket.
In a note to its institutional investor clients, Pirc said: “The reason for the extension of the scheme is solely for the benefit of the executives involved and we therefore recommend opposition to this resolution.”
Telecoms group C&W operates two incentive schemes but it is the Long Term Incentive Plan (LTIP) which angered investors when it was introduced three years ago, which has sparked controversy.
Pirc labelled the LTIP: “A cash based incentive of a type usually found in a private equity speciality finance company, whose performance conditions are vague.”