“Several of Britain’s best-known companies, including Burberry, Sky and Sports Direct, are included on a list ordered by the prime minister of firms rewarding bosses with “fat cat pay” and representing the “unacceptable face of capitalism”.
More than a fifth of Britain’s FTSE listed-firms are included on the “name and shame” register of companies that Theresa May said risk damaging “the social fabric of our country” by paying bosses too much money.
May ordered the creation of the world’s first public register of companies that ignored shareholder concerns and awarded “pay rises to bosses that far outstrip the company’s performance” in August. She said calling out the firms would help tackle the “abuses and excess in the boardroom” and restore public confidence in big business.
The public register was published on Tuesday by the Investment Association, a trade body of investment firms that manage the pensions of million of Britons.
The register lists every company in the FTSE All-Share Index which has suffered at least a 20% shareholder rebellion against proposals for executives pay, re-election of directors or other resolution at their shareholder meetings.
Companies on the register include fashion label Burberry, broadcaster Sky, retailer Sports Direct and Sir Martin Sorrell’s advertising company WPP.
Others on the list include banking giant HSBC, supermarket Morrisons, BT, estate agent Foxtons, the AA and Mothercare.
Chris Cummings, chief executive of the Investment Association, said the register “reveals the true scale of investor concern” and shows how many shareholders are “flexing their muscles by exercising their votes”.
Cummings said the fact that 22% of companies in the FTSE All-Share are included on the list shows that “a significant number of companies need to seriously start listening to shareholders views and acting on them”. …”