LONDON, Sept 17 (Reuters) - 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 remuneration policies.
“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)