2nd proxy adviser urges rebel around BAE golden handcuffs deal | Business enterprise Information

The prospect of an investor revolt from BAE Devices, Britain’s largest defence contractor, has risen just after a different influential adviser urged shareholders to oppose a £2m ‘golden handcuffs’ offer for its boss.

Sky News has learnt that ISS, which delivers carefully watched voting tips in advance of companies’ annual conferences, has argued that the pay back increase for BAE chief govt Charles Woodburn was “perfectly exterior sector norms”.

It included that this kind of retention awards had “regularly been revealed to be ineffective”.

ISS’s suggestion to traders arrives times right after Glass Lewis stated BAE traders need to oppose its remuneration report at future month’s AGM.

The arms manufacturer gave Dr Woodburn a 13% salary hike and a £2m very long-phrase share award following an endeavor by the miner Rio Tinto to poach him.

The share award is only payable if he stays at BAE for three a long time.

A amount of top rated traders say they have been reassured by chairman Sir Roger Carr’s rationalization of the selection, and that they expected to help the firm’s pay report.

A BAE spokeswoman explained: “We have proactively engaged with our best shareholders on the make a difference, who are overwhelmingly supportive of the board’s actions.”

Owing to the sensitivity of BAE’s work on a lot of government defence contracts, it ought to have a British chief executive who can hold the maximum degree of protection clearance.

That prerequisite is a complicating element in succession scheduling, heightening the relevance of retaining him, the corporation told shareholders.