Commenting ahead of Ocado’s AGM on Wednesday, Ashley Hamilton Claxton, Head of Responsible Investment at Royal London Asset Management, said:
“Ocado’s latest pay report is a classic example of how poorly designed incentive plans can lead to excessive awards for management.
“The CEO received a share award worth nearly £50 million last year, the result of a historic pay scheme that was uncapped.
“While we recognise the significant returns for shareholders which Ocado has delivered since the end of 2017, we are concerned that the Remuneration Committee did not apply any discretion, particularly as this scheme ran alongside Ocado’s regular variable pay plans.
“We have consistently voted against executive pay for a number of years at Ocado, including voting against the new value creation plan which was opposed by nearly a quarter of Ocado’s shareholders last year. Once again, we plan to vote against pay at Wednesday’s AGM.”
RLAM holds a 0.3% stake in Ocado worth around £34m.
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 £138.9 billion of assets and employs 104 investment professionals as at end March 2020. 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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