Saga buyers urged to reject boardroom pay report

Investors in Saga, the approach to life model aimed on the gray market, have been urged to reject its boardroom pay report forward of its annual assembly subsequent week.

Sky News has seen a report from Institutional Shareholder Services (ISS), the influential proxy adviser, which stated the fee of a six-figure bonus to chief government Euan Sutherland was inappropriate.

Mr Sutherland, a former boss of Superdry and the Co-op Group, was awarded a £386,000 bonus for final 12 months regardless of the continuing suspension of the corporate’s dividend and a revenue warning.

In its report, ISS stated this was “a significant concern”.

“That the annual bonus outcomes weren’t aligned with Company efficiency or the broader shareholder expertise, with a substantial majority of the bonus payout being as a consequence of strategic targets slightly than monetary metrics, exacerbates this.

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“This is coupled with concerns on the overall opportunity of quantum, including the positioning of the EDs’ salaries relative to peers, and the opportunity available under the Saga Transformation Plan.”

Glass Lewis, the opposite main proxy adviser, beneficial a vote in favour of the remuneration report, whereas IVIS, the voting advisory service operated by the Investment Association, issued an amber-top alert, that means Saga’s boardroom pay was not with out concern.

Saga, which has seen its shares stoop by an additional 43% over the last 12 months, holds its AGM subsequent Tuesday.

A spokesperson for Saga stated: “Executive remuneration at Saga, including bonuses, is awarded in line with the group’s remuneration policy.

“This was put in place following session with shareholders and was overwhelmingly authorised eventually 12 months’s AGM.

“Saga has made significant progress over the past financial year, delivering disciplined execution of our turnaround strategy against a backdrop of unprecedented challenge in our markets.

“The work accomplished final 12 months strengthens the enterprise and can allow Saga to return to the supply of long-term sustainable progress for buyers.”