Thursday 26 September 2019 4:50 pm

Micro Focus overhauls executive pay after shareholder backlash

Troubled software firm Micro Focus has said it will overhaul its executive pay policy following a backlash from shareholders.

The Newbury-headquartered company said it had reviewed its remuneration scheme after investors raised concerns about the overall structure of its pay policy.

Shareholders also hit back at changes made last year to additional share grant awards following the takeover of Autonomy from HP, as well as the bonus granted to the finance director as part of his recruitment package.

Micro Focus, which helps to extend the life of old software businesses, has reportedly called in advisers at Goldman Sachs to carry out a strategic review into the business as it battles with declining demand from its customer base.

The firm, which dropped out of the FTSE 100 after a market reshuffle earlier this month, has also lowered its revenue forecast for the full year.

Micro Focus said its new pay policy will be put to shareholders at the firm’s annual general meeting next year. Shares in the software company rose roughly 1.25 per cent following the announcement.

“We will be consulting widely with our shareholders over the coming months to further understand their views to ensure that these, together with the latest corporate governance requirements, are reflected in the new remuneration policy,” the company said in a statement.

Main image credit: Getty