Shareholders Urged to Reject Pay Rise for CEO Amid Sewage Concerns
An influential advisory group has recommended investors vote against a proposed pay increase for United Utilities' chief executive, citing insulation from performance despite sewage discharge issues.
Shareholders are being advised to vote down a proposed £435,000 annual share allowance increase for United Utilities chief executive Louise Beardmore. The recommendation comes from advisory group Institutional Shareholder Services (ISS), which stated that the proposed allowance "substantially increases guaranteed remuneration" and has the effect of "insulating pay from performance, to a degree."
Beardmore had previously been stripped of a £417,000 bonus due to excessive sewage discharges by the company. The upcoming shareholder vote on the new executive pay policy is scheduled for the company's annual general meeting on July 17.
ISS has urged investors to reject the proposals, arguing that the changes would increase guaranteed pay irrespective of company performance, especially in light of the recent controversy surrounding sewage levels. The proposed increase would add to Beardmore's overall compensation package.