(Reuters) -Centrica investors should vote against the energy company’s remuneration report at its annual general meeting next week, proxy adviser Institutional Shareholder Services said on Thursday, citing concerns over CEO Chris O’Shea’s pay rise.
In a report circulated to clients, ISS said a nearly 29% salary raise for O’Shea and of 8.5% for Centrica’s finance chief were not supported by “cogent rationale” and were significantly above the wider workforce’s increase of 3.5-4%.
Centrica increased O’Shea’s basic pay to 1.1 million pounds ($1.46 million) from 855,000 pounds per annum, effective April 1, saying his remuneration was “no longer sufficiently aligned with competitive market rates,” according to the company’s annual report.
O’Shea will also receive significantly higher quasi-guaranteed restricted stock plan awards, under the proposed remuneration policy.
In 2024, his total remuneration of 4.3 million pounds was 47% lower than the previous year when he benefited from a high share price.
Sky News first reported on Thursday that a number of shareholders will vote against Centrica’s remuneration report following the ISS recommendation.
($1 = 0.7510 pounds)
(Reporting by Yamini Kalia in Bengaluru; Editing by Leroy Leo, Shounak Dasgupta and Barbara Lewis)
