Next and Wagamama face investor backlash over CEO bonuses

theguardian.com:

The fashion retailer Next and the restaurant group behind Wagamama are facing a potential backlash over executive bonuses after both their chief executives received the highest pay since 2015 while benefiting from government support.

Simon Wolfson, chief executive of Next, whose pay will be put to the vote on Thursday, took home almost £4.4m last year, up 50% on the year before, after being awarded an annual bonus worth 100% of his basic salary and two share bonuses based on long-term performance.

Andy Hornby, chief executive of the Restaurant Group, which holds its annual meeting on 24 May, was paid £1.2m, up from £518,000 a year before, as he collected his first annual bonus after more than two years in charge. It was the first time since 2017 the group, which also owns the Frankie & Benny’s and Chiquito chains, paid out any annual bonus to a chief executive.

The Institutional Voting Information Service (IVIS), which is part of the Investment Association and advises investors on corporate governance, has marked both companies’ annual remuneration reports with a “red top” warning, suggesting that shareholders vote against. It has raised concerns about the bonuses at a time when both companies benefited from government support including furlough pay for workers and business rates relief.

“Shareholders will need to be satisfied that the payment of bonuses was appropriate in a year when the company again participated in the government’s Coronavirus Job Retention Scheme and there is no clear indication whether the company has or intends to repay the support received from the government,” IVIS said of Next according to report seen by the Guardian.

Next paid back £29m of business rates relief last summer, intended to cover the