FTSE 100 fund management group M&G has cut part of the bonus it was due to pay former chief financial officer Clare Bousfield following pressure from institutional investors.
Ahead of its annual general meeting on 25 May, M&G confirmed on Tuesday it would “not exercise its discretion in relation to the profit target applicable to the 2019 long-term incentive award granted to Bousfield”.
An M&G spokesperson confirmed to Portfolio Adviser that earlier reporting by The Times, which said the decision followed pressure from some institutional investors, was accurate.
Their concerns centred on the decision by the remuneration committee to retrospectively change the profit targets used to measure her performance.
Investors of all backgrounds have increasingly been using their votes to push back against companies, often when it comes to senior executive remuneration. Other examples include Liontrust facing a nail-biting shareholder vote to increase the pay of its top bosses in February and Close Brothers facing a revolt over plans to double its CEO’s pay last October.
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Short-term incentives unchanged
Bousfield stepped down as CFO in October 2021 after she was promoted to managing director, retail & savings at M&G.
M&G said: “Notwithstanding Clare’s valued contribution to the performance of the business, the [long-term] award will vest at 20% of maximum rather than the 41.3% set out in the director’s remuneration report.”
Bousfield had been due to receive just over £1.3m in ‘variable remuneration’ in addition to her base salary plus fixed benefits worth £477,000. This would have taken her total for the year to just under £1.8m.
While her short-term incentive award remains unchanged at £661,000, the sum she will receive for long-term incentives has been cut from £656,000 to £318,000.
This will take Bousfield’s total remuneration for 2021 to nearly £1.46m if approved by shareholders next month.
