Commenting ahead of Ocado’s AGM on Wednesday, Sophie Johnson, Corporate Governance Manager at Royal London Asset Management (RLAM) said:
“Once again, we have voted against Ocado’s pay policy as we have serious concerns over the decision to extend the company's value creation plan that will see executives receive up to £20m a year in awards.
“This is another example of how poorly designed incentive plans can lead to excessive awards for management.
“We have consistently voted against or abstained on executive pay for a number of years at Ocado, including voting against the value creation plan.
“We would have preferred a more balanced long-term incentive plan with a range of measures looking at different aspects of performance and the overall health of the business.”
RLAM holds a 0.3% stake in Ocado worth around £21m.
About Royal London Asset Management (RLAM):
Established in 1988, Royal London Asset Management (RLAM) is one of the UK's leading fund management companies, providing investment management solutions to both wholesale and institutional clients such as not-for-profit organisations, local authorities and the insurance sector.
RLAM manages £164 billion of assets and employs 129 investment professionals as at 31 December 2021. It invests in all major asset classes including UK and overseas equities, government bonds, investment grade and high yield corporate bonds, property and cash.
For professional clients only, not suitable for retail investors.
Issued by Royal London Asset Management Limited, registered in England and Wales number 2244297; authorised and regulated by the Financial Conduct Authority. Registered Office: 55 Gracechurch Street, London, EC3V 0RL.
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