British Airways-owner IAG has been criticised by a shareholder advisory group for excessive executive pay.
Advisory group Pirc has recommended shareholders abstain on IAG’s remuneration report over concerns about excessive pay for its chief executive.
Pirc said that the pay of chief executive officer (CEO) Willie Walsh was “unacceptable” when compared to an average employee, at a ratio of 57:1.
According to IAG’s 2017 annual report Walsh was paid nearly £4m last year, consisting of a basic salary of £850,000, plus taxable benefits of £25,000 and pensions related benefits of £213,000.
His bonus for the year was £1.58m and his long-term incentive amount was £1.286m
Pirc said that Walsh’s total realised rewards are “excessive” at 337.1 per cent of salary, equivalent to a bonus of 185.8 per cent of salary and long term incentives of 151.3 per cent.
An IAG spokesperson said: "We have noted Pirc's report and made our comments to them."
Supermarket Tesco has its AGM on Friday and also comes under fire from Pirc for excessive executive pay.
Boss Dave Lewis took home a base salary of £1.25m, as well as a £2.28m short-term bonus, £971,000 in shares from a long-term incentive plan and extra benefits and pension contributions which brought his total pay to £4.87m.
But Pirc is recommending that investors vote down Tesco's remuneration report, which it deems to be unreasonably large.
"The salary of the CEO is considered to be the highest when compared to salaries of other CEOs in the peer group," said Pirc in a note to its clients.