Remuneration

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, ...

Remuneration in Covid times

by Cliff Weight, ShareSoc Director Executive Pay is attracting much attention. The issues were well written up in this Guardian article. Insititutional fund managers have been slow to address this issue which is of great public concern. Their representative trade body have produced weasel words with lots of opt out possibilities, eg Chris Cummings, the IA’s chief executive, said: “Investment managers expect executive remuneration to be linked to long term company performance and aligned with the experience of its employees, stakeholders and shareholders. ...

Unjustified Remuneration at Greggs and Avast

The markets seem to be settling down from the Covid-19 panic even if the impact on company results is far from clear. But it has given me time to read the Remuneration section of a couple of Annual Reports. Firstly Greggs (GRG). Their Annual Report is a masterpiece of explaining why the company has been so successful of late – to quote from it: “Cheers to a record-breaking year. Since 1939 we have been on a roll….”. But it was clearly written ...