Latest news with #FTSE350
Mint
a day ago
- Business
- Mint
Big Pay Packages Spark Growing Dissent Among UK Shareholders
Shareholder dissent over executive pay at British companies is rising just as firms seek to bolster pay packages to remain internationally competitive. Three times as many companies faced opposition from more than 20% of shareholders so far this year compared with the same period in 2024, data from proxy-solicitation firm Georgeson Inc. shows. With investors having already voted on remuneration reports from more than half of FTSE 350 companies, 16 faced dissent exceeding 20% between Jan. 1 and May 31 this year, up from five in 2024, the data shows. 'Last year, FTSE 350 companies were more conservative in recommending higher levels of pay, which led to high shareholder support and low levels of opposition,' said Daniel Veazey, Georgeson's corporate governance manager. Pay packages of UK-based chief executive officers have grown faster this year than those of US rivals, with companies racing to close the gap to attract and retain top talent. The median FTSE 100 CEO package increased 7% to £4.79 million in 2024, according to Deloitte. 'UK Plcs are feeling freer to propose new remuneration policies designed to remain competitive with US and EU peers,' said Sonia Gilbert, Clifford Chance's incentives partner. London Stock Exchange Group Plc came up against a shareholder revolt at its annual meeting on May 1, with 31% voting against the company's remuneration report, which saw CEO David Schwimmer take home £7.9 million in its latest financial year. Consumer giant Unilever Plc also faced close to 30% opposition against new boss Fernando Fernandez's base salary, which was just modestly short of his predecessor's. UK companies are challenging the status quo a little more this year, encouraged by widespread shareholder support in 2024 and relaxed Investment Association guidelines on pay, Georgeson's Veazey said. Of 55 FTSE 100 companies that had published their fiscal 2024 reports, 24 were seeking shareholder approval for new remuneration policies, compared with 16 at the same time last year, research by Deloitte in April shows. Of those proposing changes, more than 40% submitted their policies ahead of the usual three-year cycle. British American Tobacco Plc CEO Tadeu Luiz Marroco could earn as much as £18.2 million this year under a performance-related policy, a jump from the £6 million he earned in 2024. Compass Group Plc's Dominic Blakemore also stands to benefit from a proposed maximum payout of £15.3 million in 2025, up from the £9.5 million he earned in total last year. Both maximum figures are based on a 50% increase in the stock awards from the date of grant to vesting. These proposals highlight 'the need to attract top talent in a competitive global market and address pay compression challenges,' said Mitul Shah, a partner at Deloitte's executive remuneration and rewards practice. The UK government's decision to maintain the removal of the cap on banker bonuses has gone some way to bridging the transatlantic gap. Bank of America Corp. is the latest to join a slew of rivals in scrapping the crisis-era limit. Some of the world's biggest banks are pushing UK regulators to accelerate plans to ease rules around deferred bonuses so they can apply the lighter regime to payouts for 2025. This follows long-time calls by executives including London Stock Exchange CEO Julia Hoggett that restrictions on pay were hindering companies' efforts to attract game-changing candidates and undermining the attractiveness of the City of London. Performance, especially in sectors with key competitors in the US and a tight market for talent, will ultimately steer how amenable shareholders are to boosting compensation. 'It comes down to the right shareholder engagement,' Clifford Chance's Gilbert said.
Yahoo
3 days ago
- Business
- Yahoo
NextEnergy Solar Fund Ltd (LSE:NESF) Full Year 2025 Earnings Call Highlights: Navigating ...
Gross Asset Value: Above GBP1 billion. Net Asset Value (NAV): GBP547.4 million, with a NAV per ordinary share of 0.951p. Cash Income: GBP73.2 million generated during the year. Dividend Target: 8.43p per share for FY25-26, with a yield of approximately 12%. Debt Gearing: 29.7% excluding preference shares; 48.4% including preference shares. Dividend Payments: GBP49.2 million paid in dividends. Share Buyback Program: GBP11.2 million spent, purchasing over 15 million shares. Debt Reduction: GBP59.5 million reduced, including GBP46.8 million in short-term revolving credit facilities. Energy Generation: 830 gigawatt-hours generated, 5.3% below budget. Operating Assets: 101 assets totaling 937 megawatts of installed capacity. Capital Recycling Programme: GBP72.5 million raised from asset sales, with a NAV uplift of 2.76p per share. Warning! GuruFocus has detected 2 Warning Sign with LSE:NESF. High Yield Dividend Stocks in Gurus' Portfolio This Powerful Chart Made Peter Lynch 29% A Year For 13 Years How to calculate the intrinsic value of a stock? Release Date: June 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. NextEnergy Solar Fund Ltd (LSE:NESF) has delivered 11 consecutive years of fully cash-covered dividends, demonstrating strong income generation and disciplined capital management. The company maintains a high dividend yield of approximately 12%, one of the highest in the FTSE 350, supported by a robust revenue base. NESF's portfolio includes 101 operating solar and battery storage assets, contributing to diversification and long-term growth potential. The company has successfully expanded internationally and into the energy storage sector, enhancing revenue streams and future-proofing the portfolio. NESF has a strong governance framework with an experienced and independent Board, ensuring transparency and accountability in operations. NESF's shares have been trading at a significant discount to net asset value, averaging around 27%, reflecting broader market trends and investor sentiment. The company's net asset value decreased due to declining power price forecasts and lower-than-expected generation, impacting valuations. The Capital Recycling Programme has been slower than anticipated due to a challenging M&A environment, affecting capital recycling speed. There are concerns about unplanned grid outages and their impact on generation performance, which could affect future revenue stability. The macroeconomic environment, including rising interest rates and regulatory changes, poses challenges to maintaining investor interest and share price stability. Q: Can you explain the strong irradiation performance despite last year's weak solar irradiation data? Also, what caused the 5.3% below-budget performance in asset generation, and have there been improvements in FY26? A: Irradiation budgets are set at the project's outset and updated annually. March was particularly strong, recovering much of the year's gap. The below-budget performance was due to network outages and weather-related challenges affecting asset components. Despite this, the portfolio delivered a 1.1 times cash-covered dividend. Improvements are ongoing for FY26. Q: With unplanned grid outages, do you expect more grid spending to reduce these? Also, how might thermal pricing impact your PPA portfolio? A: Increased grid spending is expected to improve stability over time, though it's a long-term process. We account for some yield curtailment in forecasts. Regarding thermal pricing, we anticipate a neutral to positive impact due to our portfolio's distributed nature. We await government updates on REMA for further clarity. Q: What were the key drivers behind the GBP3.1 million revaluation decrease in NextPower III? A: The revaluation was due to updates in the power sales strategy of one of the assets within NextPower III, which impacted its valuation. Q: Can you comment on the recent Foresight rumors and whether strategic options will be considered before appointing a full-time Chair? A: We can't comment on market rumors, but the Board is exploring all avenues to increase shareholder value, including corporate transactions and restructurings. We are working with external advisors to model future scenarios independently. Q: Why has the share buyback program paused, and is the investment management fee being reduced? A: The buyback program paused due to recent share price strengthening and capital allocation considerations. We are in active discussions with the Board regarding the fee structure to align with investor outcomes. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Guardian
4 days ago
- Business
- The Guardian
CEO pay at UK's top companies is 52 times that of typical worker, report finds
The chief executive of a FTSE 350 company is paid 52 times as much as a typical worker, according to the latest measure of inequality between bosses and their employees. Median pay for FTSE 350 chief executives was £2.5m last year, which works out at 52 times a median worker's pay, according to a new report from the High Pay Centre campaign group. The widest gap was found at the cleaning, security and waste management group Mitie, whose chief executive, Phil Bentley, was paid £14.7m, 575 times more than a middle-earner in the 2023-24 financial year. Tesco ranked the second highest for the same period among FTSE 350 companies legally obliged to report the figure. With a package worth nearly £10m, the supermarket's chief executive, Ken Murphy, was paid 431 times more than a typical Tesco worker that year. The most recent ratio, for the company's 2024-25 financial year, was lower, at a multiple of 373 as Murphy's pay fell to £9.2m. Luke Hildyard, the director of the High Pay Centre, said a maximum pay ratio between chief executives and workers could help ensure that all workers received 'a fair reward for their contribution to business success'. The pay-gap ratio was even starker among FTSE 100 companies, where the median pay of chief executives was 78 times higher than their median employees. When compared with the lowest-earning quartile, the multiple rose to 106. The High Pay Centre suggested all companies should be required to publish their CEO-to-worker pay gaps in their annual reports, and include pay figures for outsourced workers in their calculations. Its research found the pay-gap ratio between chief executives and workers had decreased in the past year, and that there had been growth in pay for the lowest-earning workers. However, the thinktank noted this could also have reflected changes such as a smaller workforce due to job cuts, outsourcing or relocation. Tensions have been growing in the City over big pay packages for chief executives. Last month Centrica, the owner of British Gas, faced a shareholder rebellion after it handed its boss a multimillion-pound pay packet while energy bill payers struggled with record levels of debt. Before the vote, the leading proxy adviser Institutional Shareholder Services recommended against supporting Chris O'Shea's pay rise as it 'was materially above those given to the wider workforce'. Elsewhere, the pay package of Marks & Spencer's chief executive, Stuart Machin, jumped to more than £7m just weeks before the cyber-attack that rocked the retailer. It marked a 40% rise compared with the £5.1m he took home a year earlier, partly as a result of a sharp rise in performance-linked bonuses. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Bosses in the banking sector are also expected to get bumper pay packages this year after the removal of the UK banker bonus cap in late 2023. NatWest Group proposed a 43% increase in the maximum for its chief executive, Paul Thwaite, taking his total compensation to as high as £7.7m for the year. Meanwhile, his counterpart at Barclays, CS Venkatakrishnan, could earn up to £14.3m, a 45% increase. HSBC has suggested a 43% rise for Georges Elhedery, for a maximum payout of about £15m. A spokesperson for Tesco said its most recent pay-gap ratio reflected a remuneration policy for executive directors tied to the performance of the business. They said: 'We remain committed to a competitive and fair reward package for all colleagues. Earlier this year we announced a further increase in hourly pay rates, equivalent to an investment of more than £900m over the last three years.' A spokesperson for Mitie said its high multiple reflected a one-off award for its chief executive after the acquisition of another business, Interserve. They said: 'The acquisition saved 29,000 jobs, Mitie's revenues have more than doubled from £2.2bn to £5.1bn, and the share price has risen 125%. 'Our colleagues have also benefited from Mitie's strong financial performance during that time through the gifting of over £19m in free shares as well as £30m of value created for colleagues who participated in the 'save as you earn' scheme during that time.'
Yahoo
08-06-2025
- Business
- Yahoo
Want to turn a £20k ISA into a £1k second income overnight? Here's how
With so many dividend-paying companies to choose from, it's not difficult for UK investors to generate a second income in the stock market. And those fortunate enough to have £20,000 sat in their Stocks and Shares ISA can immediately start earning an extra £1,000 a year just by investing in 5%-yielding shares. And looking across the FTSE 350, there are quite a few businesses offering such potential. As of June, there are 66 stocks within the FTSE 350 offering a 5% or more level of payout. And this list includes some fairly big names such as HSBC at 5.5%, Aviva at 5.9%, and Imperial Brands (LSE:IMB) at 6.7%. Snapping up £20,000 worth of shares in any of these stocks would instantly start generating even more than £1,300 in passive income. However, just because a stock offers an attractive yield, that doesn't mean it's a guaranteed winning investment. Don't forget dividends can be cut at any time if the underlying business doesn't generate enough cash flow. As such, some due diligence is crucial before jumping in. With that in mind, let's zoom in on the highest-yielding enterprise on this list – Imperial Brands. High yields and tobacco companies aren't a new phenomenon. ESG investors actively avoid buying shares in these types of businesses, while many others are put off by the increasingly hostile regulatory landscape. As such, Imperial Brands, along with other companies like British American Tobacco, have long offered impressive levels of payouts for their shareholders. What's more, both businesses have long track records of steadily hiking their dividends over time. So far, that sounds fairly advantageous for those seeking a second income. Even more so, given management has recently reiterated its targets of growing its free cash flow to as high as £3bn to fund future dividends and share buybacks. However, while that certainly sounds encouraging, hitting this milestone is far from guaranteed. The firm's latest interim results were fairly lukewarm, with sales falling by 3.1% and operating profits sliding by 2.5%. While these figures were in line with market expectations, the announcement that CEO Stefan Bomhard is stepping down later this year came as a surprise to many. Despite only being in the role for five years, Bomhard's retiring and will be moving out of the corner office in October. Under his leadership, the company emerged from the pandemic and more than doubled its market cap. And although he's selected the current CFO Lukas Paravicini to succeed him, he has some pretty big shoes to fill. Undergoing a leadership transition while navigating through a tough regulatory environment and an ongoing rollout of new non-tobacco products is no easy feat. This risk's undoubtedly a big reason why the shares are down almost 10% since the announcement. So is this a stock worth considering for generating a second income right now? That all depends on personal risk tolerance. If Paravicini can continue to execute Bomhard's strategy successfully, then a lucrative income stream seems likely. But if he can't, the recent dip might be the start of another protracted decline in Imperial Brand's share price. Investors will have to mull over the possibilities to determine if the risk's worth the potential reward. The post Want to turn a £20k ISA into a £1k second income overnight? Here's how appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Imperial Brands Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
Business Recorder
07-06-2025
- Business
- Business Recorder
London stocks advance after US jobs data quells slowdown worries
LONDON: British equities rose in broad-based gains on Friday after a US jobs report allayed concerns of an economic slowdown in the world's biggest economy, with both UK blue-chips and midcaps clocking weekly advances. Global risk assets ticked higher after data showed US job growth slowed in May amid uncertainty around US President Donald Trump's tariffs, but solid wage growth should keep the economic expansion on track. 'The US jobs report data for May suggests the economy is holding up and far from recessionary,' said Janet Mui, head of market analysis at wealth manager RBC Brewin Dolphin. The blue-chip FTSE 100 gained 0.3%, while the more domestically-oriented FTSE 250 ended 0.4% higher. Both indexes clocked firm weekly gains. On the day, heavyweight banks were among the top gainers, with Standard Chartered up 2.9%, HSBC up 1% and Barclays climbing 1.9%. Precious metal miners, the best performing FTSE 350 sector this week, lagged on Friday, clocking a 1.8% decline. Aerospace and defence shares - which jumped earlier this week after Prime Minister Keir Starmer pledged the largest sustained increase in British defence spending since the end of the Cold War - gave some of those gains back, to fall 0.8%. The week has been a volatile one for global markets as investors grappled with ever-changing global trade dynamics. Trump doubled tariffs on steel and aluminium imports, though the UK received an exemption. Trump and Chinese leader Xi Jinping also confronted weeks of brewing trade tensions in a rare leader-to-leader call on Thursday that left key issues to further talks. Back in the UK, Finance Minister Rachel Reeves is scheduled to hold her first multi-year spending review on June 11 and is expected to divvy up more than 2 trillion pounds ($2.7 trillion) of public money between her ministerial colleagues.
