By Mtaylor848 (Own work) [CC BY-SA 3.0] via Wikimedia Commons
Today, an influential investor advisory group informed the shareholders of Debenhams to oppose the pay package of Sergio Bucher, the chief executive of the firm.
Pensions and Investment Research Consultants (Pirc) said that the total potential pay for the executives of Debenhams was “excessive,” encouraging shareholders to vote against the remuneration policy of the retailer at its annual general meeting that is scheduled on Thursday.
Also, Pirc stated that the long-term incentive share plans of Debenhams did not run for long enough, lasting for only three years and that there was no period over which the executives were assumed to hold shares after they had vested.
A shareholder revolt for Debenhams would add to the woes of the department store after it announced a profit warning last week when it updated the market on its disappointing trading over the period of Christmas.
The group stated that its full-year profit would come in between £55m and £65m, below the expectations of about £83m, causing shares to drop by 20 percent.
Moody’s, the ratings agency, has since downgraded Debenhams, stating that trading conditions would continue to be volatile, and that the demand was waning.
Debenhams refused to comment on the matter.