Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

BAE Systems faces mounting criticism over CEO's pay to stay

04/22/2021 | 10:09am EDT
FILE PHOTO: A sign adorns a hangar at the BAE Systems facility at Salmesbury

LONDON (Reuters) - Britain's biggest defence contractor BAE Systems is facing mounting criticism for handing its chief executive an extra 2 million pounds ($2.8 million) to convince him to stay after another bluechip company tried to poach him.

Institutional Shareholder Services (ISS) recommended that investors vote against BAE's remuneration report, joining another shareholder adviser group, Glass Lewis, which earlier in April also recommended opposing it.

ISS said in its note that the extra pay awards given to BAE Chief Executive Charles Woodburn were "well outside market norms".

"Moreover, one-off pay awards to address retention concerns have frequently been shown to be ineffective, and are therefore not typically supported," ISS said.

Woodburn received a salary rise of 13% at the start of 2021 to bring his annual pay to 1.1 million pounds. He is also in line for an extra 2 million pound long-term share award payable if he stays at BAE until the end of 2023.

Shareholders will vote on the remuneration report at BAE's annual meeting on May 6.

BAE announced the pay increase in its annual report, explaining that Woodburn had been offered the top job at a major international public company based in the UK, named by Sky News as mining giant Rio Tinto.

Woodburn worked in the oil and gas industry before joining BAE as chief operating officer in 2016 and taking on the chief executive role in 2017.

Given the sensitive nature of BAE's defence work for Britain, BAE's chief executive must be a British citizen. That recruitment challenge plus the complexity of BAE's business and Woodburn's track record to date made the company keen to retain him.

Top shareholders support the company's decision, BAE said.

"We've proactively engaged with our top shareholders on the matter, who are overwhelming supportive of the board's actions," a spokeswoman for BAE said via email.

($1 = 0.7219 pounds)

(Reporting by Sarah Young; Editing by Keith Weir)


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
LONDON BRENT OIL -0.07% 68.2 Delayed Quote.32.01%
RIO TINTO PLC 0.90% 6535 Delayed Quote.19.47%
WTI -0.07% 64.833 Delayed Quote.34.68%
Latest news "Economy & Forex"
07:00aEgypt's GASC seeks soyoil and sunflower oil for arrival July 11-31
RE
06:44aREMARKS BY STATE COUNCILOR AND FOREIGN MINISTER WANG YI AT THE UNITED NATIONS SECURITY COUNCIL HIGH-LEVEL MEETING ON THE THEME "MAINTENANCE OF INTERNATIONAL PEACE AND SECURITY : Upholding Multilateralism and the United Nations-centered International System"
PU
06:22aEU sceptical on vaccine waiver, but ready to discuss proposal
RE
05:30aАнгеловска-Бежоска : Признанието од „Централ бенкинг“ е лично задоволство, но и за кол&
PU
04:54aTop U.S. pipeline operator shuts major fuel line after cyber attack
RE
04:27aSonangol said to sell Olombendo; ample supply weighs
RE
04:25aSouth African rand hits 16-month high before Moody's review
RE
04:24aSudan takes step towards debt relief with IMF review
RE
03:15aFRANK ELDERSON :  Interview with Het Financieele Dagblad
PU
02:42aAttack by an unmanned aerial surveillance system targets iraq's ain al-asad air base that hosts u.s. forces , no injuries - u.s. coalition
RE
Latest news "Economy & Forex"