// Primark could face shareholder revolt next week over a bonus scheme
// The scheme will see CEO George Weston pocket up to £7m
// Primark’s parent company Associated British Foods is under fire from shareholder advice group Pirc
Primark may face a shareholder revolt next week over a bonus scheme which could see chief executive George Weston pocket up to £7 million.
The retailer’s parent company Associated British Foods is under fire from shareholder advice group Pirc over a new long-term bonus scheme,” The Telegraph reported.
Weston would receive a maximum of £7 million in pay if he reaches all company targets.
Pirc warned that changes to long-term bonuses mean they could now exceed its recommended maximum.
The company has called on shareholders to oppose the changes in a vote at AB Foods’ meeting next month.
Changes to pensions and AB Foods’ long-term bonus scheme will be put to a vote.
Earlier this month, it was revealed that AB Foods would cut back executive pensions in future following a backlash from shareholders.
Pirc noted that AB Foods was not using non-financial criteria to calculate bonuses long-term.
Weston could be paid up to £7 million for 2019-2020, including bonuses based on hitting specific targets. His base salary is £1 million.
Meanwhile, finance chief John Bason could pocket a total of nearly £4 million. His base salary is £720,000.
Last year, AB Foods raised the pay of other employees by up to 3.5 per cent.
In the year to September 14, AB Foods posted a two per cent increase in revenue to £15.8 billion, of which Primark accounted for £7.7 billion.