The fund manager Schroders is at risk of a shareholder backlash after an influential advisory firm issued a warning about “excessive” bonuses and the appointment of a Schroder family member to its board.Glass Lewis has recommended that at next month’s annual meeting investors vote against the company’s pay report, as well as the election of Leonie Schroder, claiming she lacks the experience needed to challenge the firm’s executive team.
It has also urged investors to block the re-election as chairman of Michael Dobson, who Glass Lewis says is responsible for the board’s make-up and “should be held accountable for this failure”.
The advisory group said it had “severe reservations” about supporting the pay report due to the size of the bonuses granted to chief executive Peter Harrison. Harrison, who has been at the helm since 2016, was given a £6m bonus last year on a £500,000 salary.“
We remain concerned that the annual bonus plan has consistently led to unnecessarily high payouts,” Glass Lewis said. “We cannot recommend that shareholders support this proposal.”