Aston Martin faces investor revolt for handing bonuses to its chief executive after accessing £13m in emergency funds to survive pandemic
Aston Martin faces an investor revolt for handing bonuses to its chief executive after accessing £13million in emergency funds to survive the pandemic.
Shareholders have been advised to vote against the luxury car maker’s pay plans at its annual meeting, calling them a ‘material disconnect’ from the firm’s performance.
Investor advice group ISS criticised the company for paying a £142,000 bonus to chief executive Tobias Moers, who received a total of £1.48million in 2020.
Anger: Shareholders have been advised to vote against the luxury car maker’s pay plans at its annual meeting
The payout comes after Aston Martin’s revenue fell 39 per cent to £612million and losses widened to £419million.
ISS said Moers’ bonus was ‘questionable’, given the company’s performance and the £13million raised in emergency cash calls and from taxpayer aid. The company accepted a £690,000 grant from the Welsh government, but went on to cut hundreds of jobs in South Wales.
Advisory firm Glass Lewis also warned there were no targets attached to Moers’ €1million signing-on bonus.
Moers received €500,000 when he joined the firm in August 2020 from Mercedes-AMG where he was chief executive. He will receive a further €500,000 on August 1 this year. He also received £50,000 in cash each year to fund the costs of moving to the UK. The signing-on bonus was to compensate for the loss of rewards if he had stayed in Germany.
An Aston Martin spokesman said its remuneration committee recognised the significant progress made in implementing its turnaround programme and ‘determined that the strategic objectives had been met in full by the end of the year’.