Key facts
- Tate & Lyle faces a shareholder revolt over executive pay.
- Glass Lewis advised shareholders to vote against the company's remuneration report.
- The company proposed a 13.4% pay increase for CEO Nick Hampton.
- Nearly 24% of investors opposed the pay package at the previous AGM.
- Tate & Lyle has accepted a £2.7bn takeover offer from Ingredion.
Tate & Lyle is facing a potential shareholder revolt over its executive pay policies, with a leading shareholder advisory firm recommending investors vote against the company's remuneration report at its upcoming annual general meeting (AGM).
Glass Lewis, which advises investors, has urged shareholders to oppose the report due to concerns over the proposed pay package for chief executive Nick Hampton. At the previous AGM, Tate & Lyle proposed a 13.4% increase to Hampton's salary, bringing it to £820,000, to reward his strategic transformation of the business and align his pay with market norms.
However, this proposal was met with significant opposition, with nearly 24% of voting investors voting against it, exceeding the 20% threshold that Glass Lewis considers a substantial protest. The advisory firm stated that the company's board should have taken a more proactive approach in addressing these concerns and that its disclosure in this regard lags behind peers.
Tate & Lyle, known for its golden syrup brand, has since expanded its ingredients and flavourings business after offloading its sugar business rights in 2010. The firm, created in 1921 and listed in London since 1938, recently accepted a £2.7bn takeover offer from US rival Ingredion. This development followed the company's announcement of a "disappointing" 10% drop in profit to £238m, attributed to slowing consumer demand.