FTSE-100 software group Sage braced for row over recruitment awards
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Sage Group, the FTSE-100 software provider, is braced for an investor backlash after proposing big increases to new executives' potential pay packages. Sky News has learnt that Institutional Shareholder Services (ISS), one of the world's leading proxy advisers, has recommended to Sage shareholders that they oppose the company's new remuneration policy at its annual meeting next month.
The recommendation sets up a possible flashpoint at one of the first AGMs of one of Britain's biggest blue-chip companies to be held in 2025 and comes at a time when the role of boardroom pay in bolstering Britain's economic competitiveness is again being intensely debated.
Money latest: Trump sends tariff warning to EU. Sage is proposing to amend its pay policy to enable it to increase the maximum level of variable pay which can be awarded to new executive directors from 500% to 825% of base salary in the first year of employment.
That figure comprises a maximum bonus opportunity of 175% of salary, and an enhanced long-term incentive (LTI) award, capped at 650% of base salary. "The LTI award may be made as a combination of performance and restricted shares," said ISS's report to clients, released this week and which has been seen by Sky News.
Money blog: New tax rises now 'a good bet' for 2025. Rachel Reeves risks economic 'doom loop' if spending cuts continue, ex-Bank of England chief economist warns. Borrowing hits a four-year high for December. "Material concerns are identified with both the quantum and nature of the LTI award.
