Refinitiv doubts complicate LSE CEO's pay hike
Sunday 25 April 2021
The London Stock Exchange is scrambling to bolster support for its chief executive's pay rise as it prepares for a revolt at a shareholder meeting this week over problems with his $27 billion takeover of Refinitiv.
City sources told The Telegraph LSE’s corporate brokers have been trying to get major shareholders on side after Institutional Shareholder Services, an influential advisory group, urged a vote against CEO David Schwimmer’s 25 per cent salary increase. It said the award was “not considered sufficiently merited” amid problems with Refinitiv.
Initial euphoria about the Refinitiv takeover has worn off after investors found out that integration costs this year are going to be £1 billion, The Telegraph said. A blackout on Refinitiv’s Eikon data terminals earlier this month compounded doubts.
LSE advisers have argued that Schwimmer is “a good guy, not paid much before, the rise will bring him in line with rivals - that sort of rubbish”, according to one investor they contacted.
A Telegraph source added: “The market is not keen on paying more when the deal hasn’t been delivered.” ■
- The Telegraph