Shareholders of builders and plumbers merchant group Wolseley Plc should vote against the company’s executive pay report, according to the Pensions & Investment Research Consultants Ltd.
Bloomberg reports that London-based PIRC wrote to some of its clients stating that “Maximum aggregate awards are capped at more than five times the chief executive’s salary, and actual awards granted during the year are also excessive in our view”.
The Wolseley annual general meeting is due to be held next Thursday (January 20).
Chief Executive Officer Ian Meakins was paid £775,000 salary, making up a total compensation of £1.94m for the fiscal year ended in July 2010, according to the company’s annual report.
Rob Marchbank, who was CEO of the European unit until March, received compensation of £1.13m, including salary of £358,200 pounds in salary, and former chief financal officer Steve Webster, who stepped down in March, received £1.6m, of which £370,800 was salary.
Executive directors’ “target salary is set at mid-market, with the opportunity to go above this level if there is sustained individual high performance,” Wolseley has said in the annual report’s section on pay. Bonuses “at the upper end of the range” were approved because the company “delivered against challenging financial objectives,” according to the report.