Pirc, an investor advisory service, has voiced opposition to DSGi plans for a scheme under which executives in the company can swap up to 25% of their salaries in exchange for share options.
According to The Financial Times, Pirc claims shareholder interests are potentially compromised by the scheme as senior mangement may potentially reap rewards “in spite of poor performance”.
The Association of British Insurers has joined the opposition, saying that the move might breach its guidelines on best corporate governance practice.
DSGi said that it already had shareholder backing for the scheme, adding that the proposal would save the company cash and motivate staff.
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