Investors in Cineworld urged to vote against pay policy after handing ‘extreme’ package to bosses despite receiving state aid
Concern: Shareholder advisory firm Glass Lewis urged investors to vote against Cineworld’s pay policy
Investors in Cineworld have been urged to vote against its pay policy after handing an ‘extreme’ package to its bosses despite receiving state aid.
The two brothers at the top of the debt-laden cinema chain have been handed share awards which could be worth £65million if the highest share price target is hit.
It claimed nearly £33million in pandemic-related Government support.
Shareholder advisory firm Glass Lewis urged investors to vote against the firm’s pay policy at next month’s annual meeting.
It said it had ‘severe reservations’ about the stock awards given the ‘depressed share price’.
Glass Lewis said Cineworld’s response to an investor rebellion over pay last year was ‘inadequate’.
Chief executive Mooky Greidinger also received nearly £1.48million last year, up from £830,000 in 2020. His pay was boosted by a £646,000 bonus, received despite the firm posting a pre-tax loss of £542million.
Hargreaves Lansdown’s lead equity analyst Sophie Lund-Yates said it was an ‘extreme remuneration package for a company in so much trouble’.
The brothers are yet to benefit from the shares, which will vest in 2024 subject to Cineworld’s share price hitting a minimum of £1.30. To achieve the full award the stock must hit £1.90. The stock is currently at 32p.
Cineworld declined to comment.