– F&C has called for an “active review” of remuneration and ongoing engagement with concerned shareholders’ from Carrefour following its decision to pay its outgoing CEO Lars Olofsson a hefty package despite 48.7% of investors voting against or abstaining on the arrangement at the company’s AGM. F&C termed the package a “reward for failure” given shares have slumped 45%, market share in France has fallen and annual profit fell 70% to €0.37 billion under Olofsson’s leadership.
– PIRC has welcomed the introduction of a binding vote on future remuneration and greater disclosure regarding exit payments under new powers announced by the Business Secretary. PIRC believes this will enhance the accountability of companies to shareholders and help tackle ‘rewards for failure’.
– The Local Authority Pension Fund Forum (LAPFF) has called on Barclays to claw back bonuses in response to the Libor scandal going back to 2005 when the rate manipulation started. The LAPFF called the rate manipulation ‘inexcusable’ and called for serious governance and cultural reform in the UK banking industry.
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