Boardroom executive pay has been slammed as “rewarding failure” and “unacceptable” following fresh attacks from top City investors on remuneration practices.
After a contentious AGM voting season, Legal & General boss Nigel Wilson warned executives are paid “too much”, adding pay levels were “not fit for purpose” and have resulted in “a poor alignment of interests between executives, shareholders and the company”.
His comments come after BP shareholders were urged to rethink their award of £14m to chief executive Bob Dudley in a year when the company suffered its worst-ever losses.
ShareAction director of policy Jon Hoare says: “Companies are now beginning to recognise the way we pay corporate leaders isn’t working, and this year many major investors have already used their voting powers to signal their dissatisfaction. This should send a clear signal that rewards structures urgently need to be addressed.”
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