Firms told to scrap fat-cat bonuses as they axe dividends and lay off staff during the coronavirus crisis
Shareholder advisory service Pirc is urging firms to scrap executive payouts
Thousands of businesses have been urged to scrap fat-cat bonuses during the coronavirus crisis.
In a letter to the world’s biggest firms, shareholder advisory service Pirc said executive payouts were ‘difficult to understand’ at a time when they were axing dividends and laying off staff.
Alan MacDougall, Pirc’s managing director, said bosses needed to join the ‘shared sacrifice’ being made by businesses during the outbreak.
His message, sent to 4,000 listed companies around the globe, will be seen as a shot across the bows.
Employees around the world face being laid off or having pay reduced due to the economic impact of the coronavirus – but only some businesses have said bosses will also take pay cuts.
MacDougall said firms must show their ‘recognition of the challenges many employees face’.