Activist shareholder group Pirc has expressed concerns about Hargreaves Lansdown’s “excessive” executive bonuses due to be approved at the firm’s forthcoming annual general meeting.
In a newsletter published yesterday Pirc said remuneration is “a concern” at Hargreaves Lansdown and recommended that shareholders oppose the remuneration report.
It noted chairman Stephen Lansdown and chief executive Peter Hargreaves have a cap on their annual bonus of 300 per cent while the rest of the executives remain uncapped.
It says: “Awards are made at the discretion of the remuneration committee; no specific performance thresholds, targets or maximum targets are disclosed.
“We also consider that the maximum level of awards for individual employees under the scheme (300 per cent of salary) is excessive.”
Pirc also highlights the remuneration committee’s intention to introduce a new long-term incentive plan focused on performance by awarding options though share options.
It says: “Pirc is concerned about the vesting of options without the existence of predetermined, measurable performance conditions and the lack of any disclosed limit on the level of individual awards.”