Primark could face investor revolt

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Primark George Weston Associated British Foods ABF shareholder revolt John Bason
In the year to September 14, ABF posted a 2% revenue rise to £15.8bn, of which Primark accounted for £7.7bn
// 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.


READ MORE: Primark boss George Weston says shopping in store is greener than online


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.

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