Shareholder advisory group Pensions Investment Research Consultants (PIRC) is upping the ante against so-called 'rewards for failure' after advising shareholders in three of Britain's leading companies to vote against their remuneration reports in protest against pay-offs to directors.
PIRC has advised the actions against GlaxoSmithKline, broadcaster ITV and insurer Royal & SunAlliance because executives in all three still stand to receive large golden goodbye payments if they quit or are replaced before their contracts end.
"Preventing reward for failure is a buzz corporate governance terms, and we fail to see how paying someone unearned bonuses when they leave is in keeping with that aim," PIRC analyst David Somerlinck told the Mail on Sunday.
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