Compass Group has bowed to shareholder pressure ahead of this month’s annual meeting, and has agreed to limit future changes to executive options packages.
The company has come under fire from investors for allowing some share options to be “retested”. This allows companies to extend the period under which executives can meet targets for their option awards.
Investors claim this is a sensitive issue, as it can allow executives to collect large sums when their company has underperformed. One of the company’s leading shareholders welcomed the decision. He said: “We hope the move by Compass is a major breakthrough in the push to end retesting.”
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