International Consolidated Airlines Group (LON:IAG) has been criticised by a shareholder advisory group for excessive executive pay, City A.M. reports. The news comes ahead of the company’s annual general meeting tomorrow.
IAG’s share price has advanced in London in today’s session, having added 1.03 percent to 706.60p as of 9:40 BST. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.07 percent higher at 7,709.07 points. The group’s shares have added more than 17 percent to their value over the past year, as compared with about a 2.6-percent gain in the Footsie.
IAG criticised over executive pay
City A.M. reported last night that advisory group PIRC had recommended that shareholders abstain on IAG’s remuneration report over concerns about excessive pay for its chief executive. The advisory body argues that the pay of the group’s chief executive Willie Walsh is ‘unacceptable’ when compared to an average employee, at a ratio of 57:1. According to the British Airways parent’s annual report, Walsh landed nearly £4 million last year, including a bonus of £1.58 million and a long-term incentive award of £1.29 million.
The newswire quoted a spokesperson for the FTSE 100 group as saying that IAG had “noted PIRC’s report and made our comments to them”.
Analysts on British Airways parent
BNP Paribas reiterated its ‘outperform’ rating on IAG last week, valuing the shares at 800p, while Liberum Capital continues to see the British Airways and Iberia parent as a ‘buy,’ without specifying a price target on the stock. According to MarketBeat, the FTSE 100 company currently has a consensus ‘buy’ rating and an average price target of 697.13p.
IAG reported last week that its group traffic, measured in revenue passenger kilometres, had increased by 10 percent last month, boosted by strong performance at the group’s Aer Lingus and Iberia airlines.