Home Retail rocked by pay rebels

2nd Jul 2009 12:49

Argos owner Home Retail suffered a major revolt over a new director remuneration package at its AGM today, with 35.6% of shareholders voting against the deal.The scheme, which could see senior management receive bonuses of more than 150% of their salaries, had been slammed by the Association of British Insurers, which last week issued it severest warning - a "red top" - about the scheme.Home Retail's rebellion marks a further hardening of attitudes among institutions over executive pay awards seen as far too generous or with easy to hit targets.Some 60% of shareholders rejected Royal Dutch Shell's executive bonus scheme in a non-binding vote, while significant votes were also cast against schemes at BP, Next, Provident Financial, and Xstrata.Home Retail's remuneration committee is chaired by Andy Hornby, the former chief executive of HBOS and newly appointed chief executive of Alliance Boots. Home retail lost nearly £400m last year.