Social license must inform CEO remuneration
The 2021 AGM season saw much frustration amongst shareholders and stakeholders because of high levels of CEO and director remuneration during the COVID-19 health emergency. This has caused reputational damage and adverse media coverage for a number of large organisations, including some big household names.
For example, over 70 per cent of shareholders voted against the director’s remuneration report at supermarket chain Morrisons in a nonbinding vote at their AGM earlier in June, and a number of shareholders opposed the remuneration report and policy at the JD Sports AGM later that month.