Ted Baker faces investor revolt over executives pay
Ted Baker is facing a revolt against plans to increase executive pay, as the company faces financial struggles.
The Sunday Times reported that influential advisory group ISS (Institutional Shareholder Services) has recommended that investors vote down the retailer’s remuneration policy at its annual meeting this week.
The advisory firm says the company’s decision to increase executive salaries and bonuses is not justified.
CEO Rachel Osborne, who joined the business as CFO from Debenhams last year and was promoted earlier this year, is paid £525,000. That is 14% higher than her predecessor Lindsay Page, who left the business in December after a string of profit warnings.
The ISS guidance follows a "hugging scandal" that forced out Ray Kelvin, founder and CEO last year. Page, a former long-standing COO, replaced him as CEO.
Ted Baker also overstated the value of its inventory by £58m.
The shares, which closed at 69p on Friday, have lost approximately 95% of their value when compared to the value two years ago.
