LONDON, United Kingdom — Ted Baker Plc is facing a revolt against controversial plans to increase executive pay as the company fights for survival, the Sunday Times reported.
Institutional Shareholder Services Inc. recommended that investors vote down the retailer’s remuneration policy at its annual general meeting next week, the paper reported. The advisory firm says the company’s decision to increase executive salaries and bonuses is not justified.
The ISS guidance follows a hugging scandal that forced out Ray Kelvin, founder and chief executive officer last year, and numerous profit warnings. Ted Baker also overstated the value of its inventory by £58 million ($73 million) which led to the departure of Kelvin’s successor Lindsay Page in December. Rachel Osborne, former finance director, is now the chief executive officer.
By Suzy Waite.