A dozen blue-chip firms reprimanded over lavish pension perks paid to their bosses
A dozen blue-chip firms have been reprimanded over lavish pension perks paid to their bosses.
The Investment Association, which represents 200 UK investment managers, said ten FTSE 100 companies were issued ‘red top’ warnings for paying an existing director a pension contribution of 25 per cent or more of their salary.
Reprimand: The Investment Association said ten FTSE 100 companies were issued ‘red top’ warnings
A further two firms were warned for not aligning the pension contributions of new directors with that of the staff, who typically get between 5 per cent and 15 per cent.
Among those warned were drug firms Astrazeneca and Glaxosmithkline, and grocers Sainsbury’s and Morrisons. Glaxo paid chief scientific officer Hal Barron £973,000 in lieu of pension last year, well over 25 per cent.
Morrisons handed its boss Dave Potts a 25 per cent pension contribution, or £213,000, while Sainsbury’s finance chief Kevin O’Byrne received a pension contribution of 25 per cent, or £163,000.
Chris Cummings, of the Investment Association, said: ‘Given the economic difficulties many people are facing, it is only right FTSE 100 companies are aligning executive contributions with their workforce.’