Shareholders engineer at aveva called for an uprising against the “highly inflated” £package 5.5 m buyout for his new boss and offered a 50pc increase in maximum salary.
Investors were warned of the consultative group of shareholders, PIRC, and Glass Lewis to vote against its remuneration report at the annual General meeting of shareholders this week. PIRC also urged investors to vote against the re-election of Chairman Philip Aiken to the overboarding problem – when the leaders spread themselves too thinly by taking on several roles of leadership.
The company representative said that the Council “considers that the package was appropriate to attract an exceptional candidate.”
To pay the surge comes after the company finally completed a merger with the software arm of the French energy business, Schneider electric. Tie-up sealed on the third attempt created a £4bn company.
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Some 42pc of shareholders voted against last year its policy of remuneration. While the company proposes to increase to the maximum salary from € 600,000 to £900,000 for the Executive Directors.
New boss Craig Hayman in a £700,000 salary will 77pc more than the former boss James Kidd. So-called buyout rewards to lure new chief Executive officer of the American company PTC are “considered inappropriate”, said PIRC. “The total value of contracts Mr Hayman will be £5.5 m, which is very high.”
The company has not addressed the “significant opposition to the remuneration report”, PIRC added.
Although expressing his disagreement in a report last year, shareholders are expected to be able to block a jump in pay.
Schneider was awarded 60pc stake in the new combined company and will vote this week at the annual meeting of shareholders which, most likely, will force through a pay increase. Schneider two non-Executive Directors in the Board of Directors of the company.
Concerns about awards retention to keep Mr. Kidd and former chief financial officer David ward in the company were also raised by the Advisory groups.