A shareholder body has issued a warning over pay practices and recent boardroom changes at Cable & Wireless Worldwide (C&W Worldwide), it has been reported.
The Association of British Insurers (ABI), the members of which control around 15 percent of the UK stock market, sent out a so-called amber-top alert to warn shareholders about possible breaches of good governance practices, reports the Financial Times.
An amber-top alert is one level below the ABI’s most serious red-top alert.
The warning follows a profits warning at C&W Worldwide at the end of June, which led to John Pluthero taking over as CEO from Jim Marsh.
The ABI is worried that Pluthero, along with incoming finance director Ian Gibson, may receive too many performance shares under the current system, the FT states.
The association is also concerned about what it calls the ‘unusual changes’ in the boardroom, reports the paper.
The pay proposals will be put to a shareholder vote at the company’s annual meeting on July 21 in London.
C&W Worldwide defends itself in the article, saying it is reducing the size of the performance share awards and has received a positive response during an initial shareholder consultation.
