Shareholder advisory group PIRC has pushed investors of software engineering company Aveva to reject a “highly excessive” remuneration packet for its new boss, and a 50 per cent rise in the maximum cap on top salaries.
Out of a total award of £5.5m, more than £3.5m of the awards for new CEO Craig Hayman will not be subject to performance conditions despite best practice rules. Former chief and now deputy CEO James Kidd is also expected to receive a one-off £1.5m performance payout.
Additionally, PIRC has recommended that shareholders vote against a slew of board appointments whom the group considers to lack a genuine focus on or hold enough independence from the company. This includes the re-election of current chairman Philip Aiken, who holds another chair position at Balfour Beatty.
Aveva merged with French energy business Schneider Electric earlier this year, pulling together the two software arms into a £4bn company. Schneider now holds a 60 per cent controlling stake in Aveva.
If passed, new chief executive Craig Hayman will receive a £700,000 annual salary that is 77 per cent higher than Kidd earned in the same role.
Some 42 per cent of shareholders opposed a similar remuneration policy submitted by Aveva at last year's meeting, according to the Sunday Telegraph.
An Aveva spokesperson said that the "board felt that the package was appropriate to attract an exceptional candidate".