Wednesday 10 July 2019 11:10 am

Shareholders poised to oppose Vodafone pay report in dividend row

A group of Vodafone investors plan to oppose the company’s remuneration report at this month’s annual meeting as anger builds about the telecoms firm’s move to cut its dividend, according to Sky News.

Read more: Vodafone looks to woo business as it switches on 5G network

Proxy adviser ISS has said investors should vote against Vodafone’s pay plans, which could cause headaches for its board.

Vodafone would be the latest big company to fall into a pay dispute. Housbuilder MJ Gleeson saw its chief executive depart last month over remuneration, while Lloyds Bank has been forced to defend its boss’s pension deal.

Sky News said it had seen a note from ISS that said Vodafone’s remuneration report should not be supported due to the large number of shares bosses received in an incentive plan last month.

Vodafone shares have fallen 12 per cent over the last six months. The ISS note argued that “when there has been a material decline in a company’s share price, remuneration committees should consider reducing the size of LTIP awards at the time of grant”.

The telecoms company announced a 40 per cent dividend cut in May in a bid to tackle debt levels as it launches its 5G network.

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