Electrical retailing group DSG International plc. (DSGI.L) is expected to win the support from some of its biggest shareholders for a salary sacrifice scheme, the Financial Times reported Tuesday.
Under the terms of the scheme DSG chief executive John Browett will sacrifice 25% of his salary in return for share options, FT Said.
The proposal, which has come under attack from an investor advisory group, has the backing of Standard Life, the biggest shareholder of DSG with a 12% stake, the newspaper reported. Reportedly, investor advisory service Pirc has opposed the plan amid concerns that this scheme is not based on the participants' performance.
The Association of British Insurers issued an "amber top" alert, highlighting that the proposal might breach its guidelines on best corporate governance practice.
One top 10 shareholder said the amber top alert had been to notify investors that the arrangement was unusual. Insight Investment, which holds about 2.25 per cent of the shares in DSG, which would put it among the top 10 investors, has voted for the proposal.
DSG, owner of the Curry's and PC World chains, is expecting support from shareholders in spite of Pirc's opposition, given that it consulted investors before putting forward the scheme.
The proposal will be voted on on Wednesday at DSG's annual shareholder meeting.
DSGI.L declined 0.81 pence or 2.91% and closed at 26.99 pence
For comments and feedback: editorial@rttnews.com