Unilever (LON:ULVR) is facing a shareholder revolt over pay at its upcoming annual general meeting with Institutional Shareholder Services (ISS) having recommended that investors vote against the consumer goods group’s remuneration policy. The AGM, scheduled for May 2 in London and May 3 in Rotterdam, will come after the FTSE 100 group recently chose Rotterdam over London for its single corporate base.
Unilever’s share price has been little changed in London in today’s session, having inched 0.03 percent higher to 3,930.50p as of 10:27 BST, marginally outperforming the benchmark FTSE 100 index which has slipped marginally into the red and is currently 0.22 percent worse off at 7,248.70 points. The group’s shares have lost about 2.6 percent of their value over the past year, as compared with a 1.15-percent dip in the Footsie.
ISS opposes remuneration policy
Reuters reported on Friday that ISS had issued a report, recommending shareholders vote against Unilever’s remuneration policy, while giving ‘qualified support’ to the consumer goods company’s remuneration report. The advisory group explained that while there were notable improvements, there were concerns about the impact of the Anglo-Dutch group moving from a base salary to a consolidated ‘fixed pay’ structure, particularly as a result of increases to fixed pay and the annual bonus potential.
“On balance, shareholder support is not considered warranted for the remuneration policy,” ISS pointed out. Reuters reports that the comments followed a ‘red-top’ warning by the advisory service run by the Investment Association in relation to the group’s remuneration report.
Analysts on consumer goods giant
Barclays, which has ‘overweight’ rating on Unilever, lowered its price target on the shares from 4,530p to 4,490p last week. According to MarketBeat, the company currently has a consensus ‘hold’ rating and an average price target of 4,372.22p.