A shareholder rebellion against exorbitant executive pay packets seems to be gathering pace, with investors in Weir, Reckitt Benckiser, Shire and Standard Chartered all involved.
Weir Group must discuss alternative options with shareholders, says the BBC, after 72 per cent voted against a proposed pay policy at the engineering firm's AGM.
At Shire, 49 per cent of drugs firm Shire's stock owners voted against a 25 per cent pay rise for chief executive Flemming Ornskov - though, unlike in Weir's case, the vote is non-binding.
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Institutional investors are involved in the revolt. Fund manager Hermes advised Shire shareholders to reject Ornskov's pay deal, says the BBC, while Royal London will vote against pay plans at Standard Chartered and Reckitt Benckiser.
Hans-Cristoph Hirt of Hermes said: "We do not support the increase in salary of 25 per cent for the CEO, particularly given that his overall bonus potential is more than ten times his basic salary and his total remuneration was over $21m last year.
"We believe that an incremental approach to salary rises is more appropriate and should reflect shareholder value creation over the longer term."
Earlier this month, advertising guru Sir Martin Sorrell defended his pay package, expected to be the second-largest ever paid to a FTSE 100 chief executive at £70m.
Sorrell insisted he was worth it, after spending decades of his life turning WPP from a tiny manufacturer into the biggest advertising and marketing company in the world.
Sorrell said: "WPP capitalised at £1m [at its start in1985]. Today it is capitalised at £21bn. I'm not a Johnny-come-lately who picked a company up and turned it round" for a big pay day.
"Over those 31 years … I have taken a significant degree of risk. [WPP] is where my wealth is. It is long effort over a long period of time."
In March, BP shareholders voted against a 20 per cent pay rise for chief exec Bob Dudley, which would have added £14m to his pay packet. It was also a non-binding vote, but Dudley said its sentiment would be respected in future deals.
Stefan Stern of think thank the High Pay Centre, said the BP vote was "remarkable". He added: "I do think there is a feeling that things have been getting out of hand. Shareholders have signed off on pay structures they didn't understand and now we're seeing buyer's remorse."
