ULVR, GSK, TW, PSN, ADM, BATS:  Why these FTSE100 firms are facing heat?

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ULVR, GSK, TW, PSN, ADM, BATS:  Why these FTSE100 firms are facing heat?

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 ULVR, GSK, TW, PSN, ADM, BATS:  Why these FTSE100 firms are facing heat?
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Highlights

  • Several biggest companies in the UK are facing revolt this week over excessive high pay packages offered to their bosses amid the high inflation rate.
  • Influential investor advisory group, Pirc urged shareholders to come out against their excessive pay plans for bosses.

Some of the biggest companies in the UK are facing revolt this week over excessive pay packages offered to their bosses amid the looming cost-of-living crisis. The inflation rate has touched 7% in March, which is the highest in three years, adding more pressure on Britons who are dealing with rising food, fuel, and energy bills.

Consumer goods and pharmaceutical giants Unilever (LON: ULVR) and GlaxoSmithKline Plc (LON: GSK), housebuilders Taylor Wimpey Plc (LON: TW) and Persimmon Plc (LON: PSN), insurer Admiral Group Plc (LON: ADM), gambling giant Flutter (LON: FLTR), and British American Tobacco Plc (LON: BATS) are all facing backlashes, as advisory groups have urged them to vote down excessive pay packets ahead of their respective annual general meetings (AGM).

 Shareholders advisory group Pirc advised Taylor Wimpey shareholders to vote against the pay report at the AGM on Monday after its chief executive Pete Redfern was handed £2.8 million in 2021 as his salary package, which is in the top 25% of comparable companies. The advisory group also criticised the firm for shelling out such a humongous package to Redfern, which is almost forty-two times the average employee in their firm. Similarly, Persimmon handed over a £75-million bonus to its former boss, Jeff Fairburn, and is planning to award current boss Dean Finch base pay of £746,800.

The group added that the consumer goods giant GSK is planning to pay its CEO Dame Emma Walmsley a salary in the upper quartile of its comparator group and her total bonuses were excessive at more than 600% of her salary. Even Unilever is facing backlashes for its bonus plan after total variable pay was considered excessive by around 214% of the salary. 

Insurer Admiral Group paid its CEO Milena Mondini de Focatiis forty-three times the average employee’s wage, and her total variable pay was 247.8% of her salary in 2021, which is above the acceptable limit of 200%.

Cigarette manufacturing company British American Tobacco Plc was criticised for proposing bonuses and incentives to its CEO Jack Bowles of up to 750% of his salary, worth £11.8 million if the company meets all its targets. Similarly, gambling giant Flutter proposed an increase in the base pay of its CEO Peter Jackson by 26% to more than £1.1 million.

Let us look at the share performance of these seven FTSE-listed companies.

 

Unilever Plc (LON: ULVR)

With a market cap of £90,613.73 million, the FTSE 100-listed consumer goods company’s share value depreciated by -13.12% over the last one year as of 25 April 2022, while its year-to-date return stands at -9.37%. Unilever Plc’s shares were trading at GBX 3,572.00, up by 0.88% at 9:25 AM (GMT), as of 25 April 2022.

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GlaxoSmithKline Plc (LON: GSK)

With a market cap of £88,561.51 million, the FTSE 100-listed pharmaceutical major’s share value appreciated by 28.32% over the last one year as of 25 April 2022, while its year-to-date return stands at 7.20%. GlaxoSmithKline Plc’s shares were trading at GBX 1,723.00, down by 1.09% at 9:25 AM (GMT), as of 25 April 2022.

British American Tobacco Plc (LON: BAT)

With a market cap of £76,091.86 million, the FTSE 100-listed tobacco group’s share value appreciated by 18.49% over the last one year as of 25 April 2022, while its year-to-date return stands at 18.51%. British American Tobacco Plc’s shares were trading at GBX 3,240.50, down by 2.97% at 9:25 AM (GMT), as of 25 April 2022. 

Taylor Wimpey Plc (LON: TW.)

With a market cap of £4,729.78 million, the FTSE 100-listed housebuilding company’s share value depreciated by -31.04% over the last one year as of 25 April 2022, while its year-to-date return stands at -26.38%. Taylor Wimpey Plc’s shares were trading at GBX 129.15, down by 1.90% at 9:25 AM (GMT), as of 25 April 2022. 

Persimmon Plc (LON: PSN)

With a market cap of £7,072.22 million, the FTSE 100-listed housebuilding company’s share value depreciated by -31.40% over the last one year as of 25 April 2022, while its year-to-date return stands at -23.71%. Persimmon Plc’s shares were trading at GBX 2,180.00, down by 1.58% at 9:25 AM (GMT), as of 25 April 2022.

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Admiral Group Plc (LON: ADM)

With a market cap of £7,584.31 million, the FTSE 100-listed financial services company’s share value depreciated by -21.63% over the last one year as of 25 April 2022, while its year-to-date return stands at -20.84%. Admiral Group Plc’s shares were trading at GBX 2,501.00, down by 1.11% at 9:25 AM (GMT), as of 25 April 2022.

Flutter Entertainment Plc (LON: FLTR)

With a market cap of £14,528.56 million, the FTSE 100-listed global sports betting, gaming, and entertainment provider’s share value depreciated by -47.03% over the last one year as of 25 April 2022, while its year-to-date return stands at -31.11%. Flutter Entertainment Plc’s shares were trading at GBX 8,094.00, down by 2.08% at 9:25 AM (GMT), as of 25 April 2022.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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