FACTBOX - Shareholder protests in Britain

Wed Jul 8, 2009 12:13pm EDT
 
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(Reuters) - Executive chairman of retailer Marks & Spencer, Stuart Rose, is under pressure for combining the roles of chairman and chief executive against corporate governance guidelines.

Having survived an investor rebellion over his promotion in July 2008, he now faces a fresh call to share power in what would be the latest in a series of instances of emboldened investors voicing their displeasure publicly against company boards. Following are details about some recent major shareholder protests in British companies:

* BELLWAY (BWY.L):

-- House builder Bellway said it would review its policy on director pay after shareholders voted against the group's remuneration report at its annual meeting in January 2009.

-- The company came under fire after investor group ABI published a "redtop alert," which signals serious concerns with a company's behaviour, over plans to award directors large bonuses.

* BP (BP.L):

-- About 37.6 percent of BP investors opposed the oil major's executive pay plan in April 2009 and its chairman came under fire for his role as a non-executive director of nationalised lender Royal Bank of Scotland.

* HOME RETAIL GROUP (HOME.L):

-- Home Retail Group fend off an investor rebellion on July 2, 2009, over a resolution to approve a new executive bonus scheme, which would see some managers paid up to 150 percent of their salaries in cash.

-- 35.7 percent of votes cast, representing some 194 million shares, went against the motion, while holders of a further 44.1 million shares abstained.

* ROYAL DUTCH SHELL (RDSa.L):

-- Investors rejected the oil major's executive pay plan at its annual meeting in May 2009.

-- Corporate governance body Pirc had advised Shell investors to vote against the scheme at the AGM, and The Association of British Insurers (ABI) has issued an 'amber top' notice to its members over the plan indicating a deviation from best practice.

* ROYAL BANK OF SCOTLAND (RBS.L):

-- Chief Executive Fred Goodwin agreed in June 2009, to reduce his pension and will receive an annual income of 342,500 pounds, down from 703,000 pounds when the award was first agreed last year.

-- His pension stoked investor and public resentment over bankers' bumper pay deals when details of the retirement package emerged in February.  Continued...

 

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