Amber alert on Wolfson pay plan

Published on Sunday 16 May 2010 20:20

EDINBURGH-based Wolfson Microelectronics has had an "amber alert" slapped on its boardroom pay scheme by a leading City trade body ahead of this Thursday's AGM.

The Association of British Insurers is urging shareholders to study carefully one part of Wolfson's plan, which pays out if directors deliver any four consecutive quarters of growth.

The ABI believes this is not aligned to the long-term growth of the company.

It is understood the ABI told Wolfson that some member institutions canvassed "were comfortable" with the proposals but "others expressed concern".

The report to the company said: "Although near-term recovery is sought by shareholders, the sustainability of any recovery is also important."

Building materials group SIG last week saw shareholders vote down its remuneration report in protest at a 15 per cent salary hike for chief executive Chris Davies after an ABI warning.

And shareholders in Cookson Group – which received an amber top alert – recently staged a revolt after the group paid out on its long-term incentive scheme to executives.

However, although a number of smaller shareholders may question Wolfson's plan, the City does not expect a significant negative vote.