Shareholders in Glanbia plc have been urged to vote against a proposed 22% increase in the base salary of managing director Siobhan Talbot to €1.05m at the group’s annual general meeting (AGM) on Wednesday this week.

Following the 2018 financial year, the remuneration committee of Glanbia plc recommended that the base salary of Siobhan Talbot be increased from €860,000 to €1.05m per annum as part of a new three year deal. This equates to a pay rise of 22%.

The committee also recommended the base salary of Mark Garvey, Glanbia’s group finance director, be increased from €505,620 per annum to €581,000 – a 15% pay rise.

However, Institutional Shareholder Services (ISS) and Glass Lewis, two firms which provide independent advice to investors around corporate governance, have both advised investors in Glanbia plc to reject the salary increases for both Talbot and Garvey.

Bonuses

Both ISS and Glass Lewis questioned the proposed pay increases, particularly when the company was also lowering the performance targets linked to Glanbia’s long-term incentive plan. Under its long-term incentive plan, senior executives in Glanbia are rewarded with shares and bonuses for meeting certain targets in a given period.

Even if shareholders in Glanbia plc vote against the recommendations of the remuneration committee at Wednesday’s AGM, the company can still press ahead with the pay increases as it is not bound by the vote.

Farmers hold 31.5% of the shares in Glanbia plc through Glanbia co-op. The second largest investor in Glanbia plc is Capital Group, which holds 8% of shares.