LONDON, Sept 17 A leading UK-based shareholder
advisory group has recommended investors vote against
resolutions at the annual general meetings of leading drinks
company Diageo and Irish airline Ryanair.
Pensions & Investment Research Consultants (PIRC), Europe's
leading independent investor advisory firm, said the main
problem at Diageo, which has its AGM on Sept. 18, was with its
"Rewards made to the Executive Directors for the year are
considered excessive in comparison with their base salaries,"
PIRC said in a statement late on Tuesday.
"The CEO variable pay is over three times his base salary
and realised pay over the last five years is not commensurate
with financial performance of the Company and the rewarded pay
is considered excessive," it added.
As well as opposing the backward-looking pay report, it also
opposed the forward-looking pay policy, saying executive
directors' total potential rewards were excessive at 700 percent
of their base salary.
On Ryanair, which has its AGM on Sept. 25, PIRC flagged its
'oppose' vote on the annual report and the remuneration report,
citing weak disclosure of relevant information, and the
composition of the board.
"An Oppose Vote is recommended for Non-Executive Directors
Michael Horgan, Kyran McLaughlin, Michael Cawley, Senior
Independent Director James Osborne, and Non-Executive Chairman
David Bonderman, primarily due to concerns over their tenure on
the board and lack of independence," PIRC said.
(Reporting by Simon Jessop; Editing by Nishant Kumar)