British Airways owner International Airlines Group (IAG) is braced for a “shareholder revolt” over pay awards to its top executives, Sky News reported.
The media outlet stated that this revolt is expected at its annual meeting later this month over a remuneration policy that will include a one-off share award potentially worth more than £2.7 million ($3.66 million) to IAG chief executive, Luis Gallego. He will receive the payment alongside his salary.
Last year, the airline executive raked in £4.6 million ($6.24 million), up from £3.1 million ($4.2 million) during the prior year.
In a report to clients seen by Sky News, proxy voting adviser Institutional Shareholder Services, recommended that investors vote against the award, which would vest based on a three-year performance period ending in 2028.
"The one-time award is tied to operating margin performance above the company's medium-term ambition," ISS said in the report.