Shire (LON:SHP) faces criticism over its executive pay policy from a leading investor advisory group, Reuters has reported. The news comes ahead the pharmco’s annual general meeting (AGM) next week.
Shire’s share price has been little changed in London this morning, having inched 0.18 percent higher to 3,628.00p as of 1029 BST. The pharmco’s shares are underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.76 percent higher at 7,281.14 points. The group’s shares have lost about 18 percent of their value over the past year, as compared with a near two-percent rise in the Footsie.
Shire criticised over pay policy
Reuters reported this morning that Pensions & Investment Research Consultants (PIRC), which advises pension funds and others how to vote at AGMs, believed that Shire’s chief executive Flemming Ornskov’s maximum potential bonus was ‘excessive’ at 780 percent of salary, even though he took a pay cut last year.
The newswire notes, however, that two other shareholder advisory groups, ISS and Glass Lewis, had recommended votes in favour of all of Shire’s 2018 AGM proposals, including the CEO’s pay.
Crunch week ahead
The news comes at a sensitive time for Shire, whose AGM meeting is due on April 24, just a day before Japan’s Takeda Pharmaceuticals has to decide whether to make a bid for the London-listed rare disease specialist. The FTSE 100 group then is due to report its first-quarter results on April 26.
Earlier this week, the London-listed rare disease specialist inked a deal to sell its oncology business for $2.4 billion.
As of April 13, the consensus forecast amongst 20 polled investment analysts covering Shire for the Financial Times has it that the company will outperform the market.