Shareholder revolt against FTSE 100 exec pay

A fifth of FTSE businesses faced strong shareholder revolt over executives’
remuneration.

PwC’s report into executive remuneration found that for one in five FTSE 100
companies, more than 20% of shareholders withheld support for their directors’
remuneration packages.

“Although the focus of remuneration reform has so far been on the banking
sector, we are already seeing spill-over to other sectors. In particular, the
requirements to strengthen governance around pay and make proper allowance for
risk in measuring performance will touch all companies,” said PwC reward partner
Tom Gosling.

“With regulation and legislation encroaching into the area of executive pay,
the coming year may represent the last chance for shareholders, regulators,
consultants and companies to show that each can play their role in preserving
the comply or explain approach to governing pay and avoid the introduction of a
draconian rules-based approach.”