U.K. Executive Pay Faces Shareholder Revolt as Packages Swell
- Compensation policies voted down at BP, Weir, Smith & Nephew
- Investor ire shifts to Reckitt, Standard Chartered, WPP
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Investors are rebelling against multimillion-pound pay deals for U.K. chief executive officers in what is shaping up as a potentially bigger revolt than the “shareholder spring” of 2012 that resulted in the departure of some high-profile company leaders.
Just weeks into the 2016 season for annual meetings, a growing number of investors are using their voting power to send a message to boards that they will not tolerate hefty pay increases amid lackluster stock performance, spotty financial results and rising income inequality. The confrontation is set to reach a high-point next month when shareholder ire will focus on WPP Plc CEO Martin Sorrell, whose £70.4 million package for 2015 makes him Britain’s highest-paid corporate leader.