Who’s getting what?

Share this article

Almost 58% of shareholders at General Electric voted against the US industrial conglomerate’s executive pay plan, which included a potential $230m for chief executive Larry Culp, says the Financial Times. Not only was Culp’s contract extended last year during the pandemic, but the board also lowered the stock price at which Culp would start earning bonus shares and almost doubled the amount of stock he would receive. As the stock “roared” back, Culp locked in $47m, with up to $230m vesting from 2024.

Mining giant Rio Tinto suffered a rare shareholder backlash when 61% of investors rejected the company’s pay policy, worth $55m in salaries and bonuses for the company’s top 14 executives, in a non-binding vote, says BBC News. However, the most contentious aspect of the pay plan was the $10m bonus for outgoing boss Jean- Sébastien Jacques. Last May, Rio Tinto destroyed sacred Aboriginal sites in Australia, leading to a public outcry and resignations,
including those of the CEO and chairman.

Defence and aerospace contractor BAE Systems changed the terms of its bonus scheme so that its CEO, Charles Woodburn, could be handed a £2m “golden handcuffs” deal after Woodburn was approached to join Rio Tinto, says The Times. Woodburn also received a
13% pay rise over two years, taking his basic salary to £1.1m. Last year, Woodburn
earned a total of £6m, up from £3.7m in 2019.

Nice job if you can get it!

“Big company bosses lose only a fraction of their pay when employees die on the job,” said Kevin Rawlinson and Jasper Jolly in The Guardian. Top executives at companies with bonuses tied to reducing worker fatalities lost an average of “only” £33,600 per worker, or less than 1% of their average total pay, when an employee died in the 2019-2020 reporting period, according to shareholder advisory firm Pensions & Investment Research Consultants (PIRC). Its analysis of annual reports from 38 FTSE 350 companies at which at least one person died at work between 2015 and 2019 showed that two firms did not even report docking their bosses’ health and safety bonuses. Building group Balfour Beatty reported the smallest bonus cut of
£12,500 per worker in the 2019-2020 reporting period, steelmaker Evraz the biggest at £61,207 per fatality of its employees and contractor.

Source: MoneyWeek

Kris Paterson is a writer for

Similar Articles

Don't Miss

Navy Will Cut 500 Civilian East Coast Jobs

To fulfil Navy Region Mid-Fiscal Atlantic's Year 2022 budget objective, 500 Navy civilian employees on the East Coast will be laid off, and port activities would be limited to daylight Monday through Friday.

Fed signals bond-buying taper may start soon

As the US central bank's shift away from economic crisis measures gets traction, the Federal Reserve indicated on Wednesday that it will likely begin cutting its monthly bond purchases as soon as November, and that interest rate hikes may come sooner than planned.

Should staff return to the office?

For example, it may persist with current Covid-19 precautions in the workplace, requiring employers to plan for social distancing and to provide extra hygiene facilities. There may also be special arrangements in place for Vulnerable workers, such as pregnant women and those who have been shielding during the crisis