Loans and Finance

Loans and Finance

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News and information about loans, money, debt, finance and business issues.

Wednesday, September 02, 2009

Amber Alert

Full credit to John Browett, chief executive of DGS (owners of Curry's and PC World), for offering to take a 25% cut in pay.

Shareholders will vote on the plan today.

However, they may not be so pleased with the other part of the plan whereby Browett receives share options which apparently are not related to the performance of the company.

The Times reports that the Association of British Insurers has issued an "amber top" alert, seemingly the proposal may breach its guidelines on best corporate governance practice.

Board members' remuneration should in part (eg bonuses/options) be linked to the performance of the company as measured by key performance indicators (KPI's), as agreed upon by the shareholders and an independent remuneration committee.

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