STANDARD Life Investments has added its voice to the growing chorus of concerns over the remuneration of executives behind the £50 billion merger of Glencore and Xstrata.
Xstrata boss Mick Davis is in line to pick up £28.8 million as a retention bonus to stay at the head of the business for three years with a total of £172m being split across 72 senior staff to keep them on for two years.
David Cumming, head of equities at Standard Life Investments, believes the merger deal should be opposed. He said: "The proposed remuneration payments, the payout of existing service contracts, the vesting of outstanding incentive awards and the excessive retention payments to ensure the commitment of a management team who are supposedly supportive of the deal, all without any requirement in terms of performance conditions to deliver anything for shareholders, is unacceptable."
Fidelity echoed that statement and Dominic Rossi, global chief investment officer of equities, said: "In effect the interests of management have been placed ahead of those of shareholders."
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