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C&W investors urged to block directors' pay

City A.M. Reporter
<div>CABLE&nbsp;&amp; Wireless (C&amp;W) is under pressure again over pay deals offered to directors, after advisory firm Pirc urged investors to oppose plans to extend a controversial incentive plan.<br /><br />The plan, which also came under fire from a top 10 shareholder, has led to a &ldquo;red top&rdquo; alert from the Association of British Insurers (ABI), its most serious warning indicating a breach in corporate governance best practice. ABI members own 15 per cent of the UK stockmarket.<br /><br />In a note to its institutional investor clients, Pirc said: &ldquo;The reason for the extension of the scheme is solely for the benefit of the executives involved and we therefore recommend opposition to this resolution.&rdquo;<br /><br />Telecoms group C&amp;W operates two incentive schemes but it is the Long Term Incentive Plan (LTIP) which angered investors when it was introduced three years ago, which has sparked controversy.<br /><br />Pirc labelled the LTIP: &ldquo;A cash based incentive of a type usually found in a private equity speciality finance company, whose performance conditions are vague.&rdquo;</div>