UK - Three of the UK's major voting issues voices have approved Scottish & Newcastle's director remuneration report.
Pensions Investment Research Consultants (PIRC), the National Association of Pension Funds (NAPF) and Institutional Shareholder Services (ISS) have advised shareholders to vote in favour of S&N’s director remuneration report when it is tabled at the company’s AGM next Thursday.
However, PIRC and ISS have welcomed the decision to put the remuneration report to the vote but have expressed concerns about what they call insufficiently challenging performance targets for long term incentive schemes.
The two bodies said they did not consider S&N’s earnings per share (EPS) growth of 3% to be challenging under the executive share option scheme, the main outstanding long term incentive scheme.
PIRC said it was informed by S&N that it operates in a mature industry and it would be extremely difficult to achieve the levels of EPS growth which might be achievable in other industries.
Meanwhile, the NAPF has said that the EPS growth of 3% is common and is accepted by most institutional investors including the Association of British Insurers.
By Janet Du Chenne
This week's edition of Professional Pensions is out now
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