Marks & Spencer’s investors are being urged to abstain from the retailer’s remuneration report at next month’s AGM.
Corporate governance lobby group Pensions Investment Research Consultants (PIRC) argued the retailer’s policies could result in excessive payouts, The Guardian reported.
The body said last year the retailer’s directors received bonuses worth twice their base salary. PIRC said that, while M&S has tightened its conditions around incentive schemes, it still “represents a structure that can promote future excessive payouts.”
PIRC took issue with the £4m “golden hello” given to executive director for multichannel e-commerce Laura Wade-Gery last year when she joined from Tesco.
The body said: “PIRC does not consider such recruitment bonuses as a justifiable use of shareholder funds.”
Chief executive Marc Bolland received £2.5m extra in the last financial year and was eligible to cash in shares worth £1.7m on top of his base salary of £975,000.
The AGM takes place on July 10.