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London Stock Exchange Group has suffered a significant revolt about the planned salary for executive president David Schwimmer after 30 percent of the shareholders voted against.
A significant minority protested at the group’s annual meeting against LSEGSchwimmer’s remuneration policy, Schwimmer’s payment, will increase to £ 7.8mn from £ 5.1mn this year. The exchange and data group, which is part of the FTSE 100, had argued that its boss’s salary should be BenchMarsed against us and domestic rivals.
ISS, the power advisor, had previously urged shareholders to reject the package for Schwimmer, citing concerns about the award plan for a long -term incentive scheme. The scheme was “contrary to the typical United Kingdom market,” warned the advisor.
Thursday’s great vote marked the Second reprimand by shareholders in five years to the LSE Board on the payment of Schwimmer. The former Goldman Sachs banker, who has directed the group since 2018, has supervised a transformation of the owner of the London Stock Exchange, with the purchase of $ 27 billion of the Refinitiv data provider in 2021.
Although the agreement helped convert the exchanges operator into a global financial group and one of the 10 largest companies in FTSE 100, criticisms have been hindered that it has lost its focus on the stock market.
There were only 18 new listings in their markets last year, the lowest total since 2010, while 88 companies eliminated or transferred their main list, according to data from the consultant EY.
LSEG’s shareholders approved last year for almost 90 percent of the new remuneration policy, which compared the performance of its senior executives with other exchange and data suppliers, including Global S&P and MSCI International.
Schwimmer’s performance will be measured equally in two reference points: FTSE bosses and chiefs of rival global competitors. The adjudication threshold for comparison with industry colleagues is established in an “average yield”, for which it will receive a 50 percent payment ratio, double -present rates.
The company said it would continue to interact with shareholders and “carefully consider any additional feedback” to Thursday’s vote. He will publish an update within six months in line with the corporate governance standards of the United Kingdom, he added.
LSEG also reported an 8.7 percent increase in total income in the first quarter to march as uncertainty about the global rates policy of the president of the United States, Donald Trump, promoted trade in his currency business, fixed income and free sale derived.
The shares closed 2.3 percent to £ 113.60 in the negotiation of London. At the beginning of the year, the action reached a record of £ 129.50.