The owner of Premier Inn has faced a backlash of over £ 1.5 million in executive bonuses after the company posted a billion pound loss
Premier Inn’s FTSE 100 owner has faced a backlash of over £ 1.5 million in executive bonuses after the company posted a multi-billion pound loss.
The city was rocked by shareholder revolts this summer, including a massive 70 percent attack on grocer Morrisons earlier this week over the CEO’s pandemic bonus.
Whitbread, the UK’s second largest publicly traded hospitality company, is under fire as bosses line up for awards despite taxpayers, employees and investors.
Backlash: Whitbread, the UK’s second largest publicly traded hospitality company, comes under fire as bosses line up for awards amid taxpayers, employees and investors affected
In its final results for the year ended March, the company posted a loss of £ 1 billion, compared to a profit of £ 280 million the previous year.
Whitbread benefited from £ 138 million vacation pay and a £ 120 million savings from the holiday of business rates, laid off 1,500 employees and suspended dividends.
Even so, Alison Brittain, the CEO, is about to receive an annual bonus of £ 729,000 while CFO Nicholas Cadbury could receive £ 492,000.
The ISS advisory group has recommended that shareholders abstain or vote against payroll at Thursday’s annual general meeting, while the investment firm issued a warning of a “red tip,” the highest level.
ISS said the “significant awards … are not considered appropriate” when employees, taxpayers and shareholders all took a blow.
To dampen resistance, the company has postponed the award until 2022, when it is subject to another round of targets.
This means there will be no bonus payments this year, the company said.
The bosses have told the company’s shareholders that they are “further optimizing the government support packages”.
The tsunami of resistance to payment of reports at several annual general meetings this year is referred to as “shareholder spring”.
Investors have regained confidence amid record levels of government support, a wave of job losses and massive dividend losses as companies battled global lockdowns.
Last month, Rio Tinto had a 62 percent vote against inflated pay packages for its outgoing bosses, while more than a quarter voted against a £ 66 million bonus for Cineworld boss Mooky Greidinger and his brother and deputy Israel.
There were also rebellions at Intertek, Savills, Playtech, Pearson, BAE Systems, and Glencore.
Whitbread said, “Part of the incentive program that would have been paid this year is being postponed and is dependent on meeting new challenging performance targets designed to help the business recover.”