UK - Soaring executive pensions are set to become a major area of shareholder activism, Pensions Investment Research Consultants claims.
PIRC issued its forecast in the wake of reports that the departing chief executive of retail company Kingfisher, Sir Geoff Mulcahy, will receive a £700,000 pension.
His pension – which exceeds a previous record set by BT chief executive Sir Peter Bonfield, who receives an annual pension of £321,000 – will be weighted to inflation.
PIRC research director Stuart Bell said: “Pension entitlements have been generally overlooked by investors in the past when looking at directors’ pay.
“That will not happen any longer and investors will be required to vote on it from next year.”
He expected that the issue of executive pensions will be one of the most prominent in next year’s proxy season.
Bell added that with unions and employee bodies focusing more on pensions issues, disparities will further fuel controversy.
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