Mothercare prepares for talks with investors over directors' pay

 
Helen Cahill
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(FILES) A London office block known as t...
Crest Nicholson has already lost a vote over executive pay (Source: Getty)

Mothercare is reviewing its remuneration policies for directors after a turbulent year for the company.

The retailer is preparing to shake-up how it rewards its top bosses and will be consulting shareholders in the coming months ahead of a vote at the company's annual general meeting (AGM) in July.

Mothercare's share price has dropped by a third over the past year and it suffered a 16 per cent haircut to profits in the six months to October.

A spokesperson from Mothercare said: "Mothercare values an open and transparent dialogue with investors to ensure the company's remuneration strategy continues to be aligned with the long-term interests of the business and its shareholders."

Read more: Crest Nicholson "disappointed" as investors vote against executive pay

The Sunday Times reported that Mothercare will lower its bonus targets to make it easier for executives to earn their share awards.

The news comes after Crest Nicholson suffered a blow from shareholders at its AGM last week. They voted against the directors' pay, firing a warning-shot for companies that have not been closely communicating with investors.

Institutional investor Standard Life, which opposed Crest Nicholson's pay proposals, said it was frustrated Crest Nicholson had not consulted with shareholders before the AGM.

A spokesperson for Mothercare said the firm will be consulting fully with shareholders before making any pay award.

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