BT Investment Management Ltd. faces opposition to its remuneration of its CEO and other top executives from Ontario Teachers’ Pension Plan, while Institutional Shareholder Services and Glass Lewis support the pay package.
The Toronto-based C$154.4 billion ($115.9 billion) OTPP will vote against the executive remuneration package over “concerns over the ability for some long-term performance targets to be retested after the initial performance period has ended, and what we consider to be weak (earnings per share) targets when compared to analyst estimates,” according to OTPP’s proxy-vote disclosure. “Taken as a whole, we do not support this proposal.”
Institutional Shareholder Services recommends clients vote in favor of the executive remuneration.
“A vote for the remuneration report is warranted on the basis that the overall framework of a lower fixed remuneration component, and higher ‘at risk’ remuneration is consistent with shareholder expectations,” an Institutional Shareholders Services report said. “Furthermore, executive remuneration outcomes as reflected in (short-term incentive) and (long-term incentive) payments reasonably reflect company performance and shareholder outcomes in (fiscal year 2015) and over the last three years.”
Glass Lewis, in a report recommending clients vote in favor of the pay package, said BT “has managed to adequately align executive remuneration and company performance in the past year.”
For the fiscal year ended Sept. 30, CEO Emilio Gonzalez’s total remuneration was A$3.2 million ($2.3 million), according to BT’s annual report. Total remuneration for the CEO and six other top executives for the year was A$12.1 million.
BT, which owns J O Hambro Capital Management Ltd., has A$83 billion in assets under management. Westpac Financial Services Group Ltd. owns 31.04% of BT.
Sydney-based BT’s annual meeting is Dec. 8.