BAE Systems share price: Top investor concerned over new boss’ pay package

on Mar 6, 2017
Updated: Oct 21, 2019
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A top 25 investor in BAE System (LON:BA) has complained about the size of the pay package of the group’s new boss, The Times has reported. The news comes after the defence giant recently confirmed that its chief operating officer Charles Woodburn will take over from Ian King in July.

BAE Systems’ share price lost ground on Friday, closing 1.08 percent lower at 643.50p, underperforming the broader market, with the benchmark FTSE 100 index ending the session 0.11 percent lower at 7,374.26 points. The group’s shares have gained just under 27 percent over the past year, and are up by more than eight percent in the year-to-date.
The Times reported this morning that Blackrock, a top 25 investor in BAE Systems, was understood to have voiced concerns over the £7.5 million that the defence group’s new boss Charles Woodburn could potentially earn, including bonuses and share options. The company told the newspaper yesterday that one of its top institutional shareholders, which it refused to name, had raised concerns, but insisted that its remuneration policy was “in line with best practice and other FTSE companies”.

BAE Systems further pointed out that the maximum bonus and share options awards for the chief executive were unchanged since 2013, while Woodburn’s basic salary of £875,000 would be below King’s £982,000. The Times notes that shareholders in the UK defence giant are set to vote on the pay package at the group’s annual meeting on May 10.
The 17 analysts offering 12-month price targets for BAE Systems for the Financial Times have a median target of 685.00p, with a high estimate of 780.00p and a low estimate of 460.00p. As of March 4, the consensus forecast amongst 20 polled investment analysts covering the defence giant has it that the company will outperform the market.
As of 07:41 GMT, Monday, 06 March, BAE Systems plc share price is 643.29p.

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