LONDON Feb 13 Travel group TUI has
been criticised for its arrangements on governance and executive
pay by a leading shareholder body, which said that the tour
operator's approach falls short of British standards.
Ahead of TUI's results and annual general meeting on
Tuesday, Institutional Shareholder Services (ISS) criticised the
tour operator for not giving its shareholders a vote on
executive pay and for using transaction-related bonuses.
Though incorporated in Germany, the group's main listing has
been on the London Stock Exchange since the 2014 merger of TUI
Travel and TUI AG in 2014.
"In general, we find that while TUI's overall governance
arrangements are consistent with German market practice, there
are a number of areas where the company falls short of UK
investor expectations," the ISS report said.
"In addition, some elements of the company's approach to
executive pay fall short of expected UK practice."
A TUI representative was not immediately available for
Last week rival Thomas Cook encountered significant
investor dissent at its AGM, with about a fifth of shareholders
voting against its directors' remuneration.
(Reporting by Alistair Smout; Editing by David Goodman)