Remuneration

ISS announce pay issues survey results

This article represents the view of its author and not necessarily those of ShareSoc The issue of skin  in the game and executive pay and how this impacts future share price (and dividends) performance is a crucial one. My favourite quote is from Charlie Munger "you show me the incentives and I will show you the behaviours". So when leading proxy advisor firm ISS announce their plans for next year, it is well worth looking at them. Please note these are their US ...

Daily Mail, 26 August 2021, Fury at £100m bonus for the Sports Direct prince

Mike Ashley does it again: stirring up controversy over a proposed bonus scheme for his future son-in-law. ShareSoc director (and former remuneration consultant) Cliff Weight is quoted in this article in the Daily Mail: Cliff Weight, of small shareholders campaign group Sharesoc, also questioned why Murray was worth his enormous pay package. He raised concerns that Ashley would be able to ram the proposal through at an annual general meeting next month even if other investors resist. 'This is clearly a case of a 60 ...

Laggard Unanswered Questions at Eleco

I received an unhelpful response to a question today (19th May) from Eleco (ELCO). I have been a shareholder for some time in this construction software company. The company announced on the 26th of April that it had received a requisition notice that covered resolutions to reappoint two directors, that all directors stand for re-election at future AGMs and that the remuneration committee report be approved. It was certainly unusual that such resolutions were not on the AGM agenda on the 6th ...

Daily Mail, 2 May 2021, Aviva Investor Revolt

The Daily Mail quoted ShareSoc Director Cliff Weight in its 2 May Aviva article https://www.thisismoney.co.uk/money/markets/article-9535371/Aviva-faces-investor-revolt-preference-shares-scandal.html   Aviva faces an investor revolt this week after angering shareholders by deciding not to claw back fees from directors who oversaw a preference shares scandal. The insurer was rocked in 2018 when it said it was considering buying back shares marketed as 'irredeemable' for less than they were trading at. It reneged on the announcement days later, by which time the shares had tumbled. It was forced to compensate investors. ...

New Year’s Remuneration Resolutions

By Cliff Weight, ShareSoc Director. I was asked to write an article on remuneration, which was my specialist subject before I retired. I thought ShareSoc readers might be interested in my musings which were published as the lead article in the specialist magazine Executive Compensation Briefing. My article is attached below (free). ecbjan21 pages 1-3    

More about Skin in the Game and Impax

By Cliff Weight, Director, ShareSoc Please note that these are my personal views and not those of ShareSoc. Neither I nor ShareSoc is able to give financial advice and nothing in this blog should be construed as such. Disclosure: I hold shares in Impax but not in IGR. Back to my Portfolio and Impax I have had a busy few weeks, with the launch of the Woodford Campaign, the Sirius webinar and a massive 49 page response to the FCA’s Call for Input on ...

Chrysalis – Vote NO at 26 November General Meeting

Shareholders are excluded from this GM and there is no pre-meeting webinar to discuss these highly contentious proposals to wind up the VCT and distribute any monies raised (less administration fees, including payments to the failing fund manager and some directors). Several members of the ShareSoc VCT Investor Group (including Tim Grattan, Mark Lauber, Roger Lawson and myself) met on 10 Nov to discuss Chrysalis' plans. Our conclusion was that shareholders should vote against these proposals for the following reasons: Chrysalis is ...

Investment Trust Discounts, What To Do About Them and SEC Example

In this article, I argue that discounts are bad for those invested in a trust, and the Board of the investment trust should look to reduce any discount. However, for those thinking of investing in the trust the discount might be an opportunity. The question is, how real is that opportunity or is it just a 'value trap'? We look at why discounts can arise and the measures that can be taken to eliminate them or even move the trust to a ...

Ocado Trading Update, Coronavius Apps, EMIS AGM, IDOX Pay, Segro Dividends

Ocado (OCDO) issued a trading update today, and it shows their joint retail venture with M&S is benefiting from the coronavirus epidemic. In the second quarter revenue was up 40% on the prior year. They have had to ramp up capacity significantly to meet this demand, and they have suspended delivery of mineral water so as to cope with the needs of additional households. The announcement gives the distinct impression that they need more warehouses (or CFCs as they call them). On ...

LeaderExemplary Remuneration at Judges Scientific

I recently commented negatively on the remuneration section of the Annual Reports of Greggs and Avast. Today I read another Annual Report from Judges Scientific (JDG) and it’s a completely different story. I have held shares in this company which is a scientific instrument maker since 2010. The share price then was 327p. It’s now 4940p. Led by CEO David Cicurel in that period, as the Annual Report says the “Management is focused on shareholder value – profitability, cash generation, debt reduction, ...