// Ted Baker faces shareholder revolt over executive salaries and bonuses
// An advisory firm recommended that investors vote down the retailer’s remuneration policy
Ted Baker is facing backlash from its investors over plans to increase executive pay amid its battle for survival.
Institutional Shareholder Services (ISS) has recommended that investors vote down the retailer’s remuneration policy at its AGM next week.
The advisory firm said that Ted Baker’s decision to increase executive salaries and bonuses is not justified.
- Ted Baker raises £105m to alleviate Covid-19 impact
- Ray Kelvin no longer biggest shareholder in Ted Baker
Since Ted Baker’s forced hugging scandal surrounding its founder and chief executive Ray Kelvin, last year, shareholders have suffered a string of profit warnings.
At the beginning of the year, auditors at Deloitte found that the value of Ted Baker’s stock inventory was overstated by £58 million, which was almost three times as bad as it first thought.
It was a huge increase on the initial estimates of between £20 million and £25 million late last year.
The overstatement had prompted the departure of Kelvin’s successor Lindsay Page in December.
The shares, which closed at 69p on Friday, have lost about 95 per cent of their value in the past two years.
Rachel Osborne, promoted from finance director to chief executive, is paid £525,000, 14 per cent higher than Page.