UK - Unions have hit out at institutional investors which failed to vote against increases to the Corus executive bonus scheme at the firm's annual general meeting.
The Trades Union Congress branded the decision to improve the bonus scheme for Corus bosses – which comes at a same when the steel fabricator has axed over 1000 jobs – as “insensitive in the extreme”.
A majority of shareholders at the annual general meeting – 54% – voted against the pay package. But this majority was overturned by proxy votes, giving the board a majority.
TUC general secretary-elect Brendan Barber warned institutional investors: “The TUC will include the Corus pay report in next year’s survey of investor voting decisions so that trade unionists, particularly those who are pension scheme trustees, can identify which fund managers are truly in tune with union concerns.”
National trade union steel coordinating committee chairman Michael Leahy said: “Those large shareholders who voted for the outrageous bonus scheme proposed for executives with a record of failure should be ashamed of themselves.
“The large pension funds have not served their members or the company well.”
The pay package – which could give a £820,000 bonus to incoming chief executive Philippe Varin – was approved by 90% of shareholders.
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