Intu seeks to raise boss’s bonus amid financial troubles
Beleaguered retail landlord Intu could face a showdown with investors over executive pay, as it seeks to hike the potential bonus of new chief executive Matthew Roberts.
Intu is seeking to bring the the potential share awards in its long-term incentive plan back up to 250 per cent, after the scheme was cut back to 200 per cent last year.
However, Roberts is expected to cut his pension contribution from 24 per cent of salary to 10 per cent.
The new boss’s salary has not yet been announced. His predecessor David Fischel received £615,000 a year.
One Intu shareholder told the Sunday Times: “We’re disappointed…that increasing Ltip awards is even being considered.”
The plans come as the property giant is aiming to raise around £1bn in an emergency cash call as it attempts to pay down its debts.
Last week Link Real Estate Investment Trust pulled out of the proposed equity raise which is expected to be launched alongside its full-year results later this month.
Meanwhile, Intu denied reports that it has not taken the potential impact of Arcadia store closures fully into account.
The Telegraph reported that short sellers believe the closures of Topshop and Dorothy Perkins stores have not been fully accounted for in loan covenants.
However, a spokesperson for the landlord said the Arcadia company voluntary arrangement is already accounted for.