PROXY adviser Pensions and Investment Research Consultants (Pirc) has recommended that shareholders oppose Thameslink owner Go-Ahead's payment policy over fears that director pay outs could be excessive.
Under the proposed changes to the bus and train company’s variable remuneration scheme the “maximum potential opportunity” could be 300 per cent of chief executive David Brown’s base salary, and 250 per cent of chief financial officer Patrick Butcher’s annual pay.
In a note to shareholders ahead of the company’s annual general meeting on Thursday, Pirc said: “Maximum potential opportunity afforded under both variable remuneration schemes is considered excessive at 300 per cent of base salary for the chief executive and 250 per cent for the group chief financial officer."
Pirc also recommended that shareholders abstain from the vote to approve the remuneration report, saying that the ratio of chief executive pay to average employee pay is not appropriate at 31:1.
A Go-Ahead spokesperson said: “The board has made minor changes to bring the executive remuneration policy further in line with best and market practice. We have consulted widely with all our major shareholders and proxy voting agencies. ISS and IVIS do not share Pirc’s concerns.”