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to veto 'fat cat' deals By
James Moore Telegraph.co.uk,
May 12, 2003 Three companies are
set to face shareholder unrest next week after the National Association of
Pension Funds highlighted concerns over boardroom pay to their investors. The organisation,
which has been criticising companies which it feels fall short of best
practice, has urged shareholders to either abstain or reject resolutions
put forward by software group LogicaCMG, CLS Holdings, the property
company, and market researchers Taylor Nelson Sofres. The NAPF said
investors should abstain on LogicaCMG's remuneration report because of
changes made to its executive share option scheme. It says: "A
proportion of awards are now exercisable for achievement of a lower
performance hurdle than applied prior to September 2002." It also criticised an
ex gratia payment of £275,000 made to David Robbie, CMG's finance
director, whose contract was terminated when the merger with Logica
completed, in recognition of his contribution to the deal. The NAPF said
this could be seen as a transaction bonus and that the long term
shareholder value generated by the deal was "by no means clear". CLS has been
criticised for paying bonuses of up to 152pc of salary for executives. The
organisation accepts directors are not well paid compared with their peers
but criticised what it said was "very little information" given
on the workings of the executive share option scheme and on the
performance criteria for bonuses. Taylor Nelson
shareholders have been urged to abstain on the re-election of chief
executive Mike Kirkham because his contract provides him with 24 months'
notice. Finance director David Lowden also has 24 months' notice, but only
if he were to lose his job in the event of a takeover. LogicaCMG said it was
reviewing what the NAPF had said. No one from CLS or Taylor Nelson was
available for comment. Copyright
© 2002 Global Action on Aging
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