Lloyds and ITV recently held their AGM’s and it looks like there could be a backlash over executive pay at both companies.

Laith Khalaf, Senior Analyst, Hargreaves Lansdown: ‘Both ITV and Lloyds are businesses which have performed well, while their chief executives are actually taking home less than last year, however the mood music at the moment is not conducive to large executive reward packages. Excessive executive pay is not a new issue, but it has probably come to the fore in 2016 for three main reasons. One is share prices are generally lower than they were a year ago, which has focused minds on how much executives are taking out of the business – shareholders with buoyant portfolios don’t tend to cause too much trouble. At the same time shareholder action groups have really got the bit between their teeth this spring when it comes to payouts, while at the same time corporate governance is also rising on the agenda at fund management groups, who are becoming more vocal about remuneration packages.’

Lloyds and ITV in focus
Both ITV and Lloyds are businesses which are performing well, but in the current environment their executive reward packages are clearly subject to a high degree of scrutiny. Lloyds shareholders will today be voting on the remuneration of Chief Executive Antonio Horta-Osorio, while at ITV investors will be looking at Chief Executive Adam Crozier’s pay package.

Antonio Horta-Osorio expects to take home £8.8 million for 2015, that’s actually down from £11.5 million in 2014. Over the course of 2015, Lloyds sold off TSB, saw underlying profits grow 9 percent and returned to the dividend list. Adam Crozier is looking at a reward package of £4 million for 2015, down from £4.8 million in 2014. Over the year profits grow by 18 percent with a 28 percent rise in ordinary dividends and a 46 percent rise in total dividends (including specials).