London's Stock Exchange experiences shareholder rebellion over CEO's extravagant compensation package.
The London Stock Exchange Group (LSEG) is grappling with a substantial shareholder backlash against CEO David Schwimmer's swollen paycheck, worth a whopping £7.8m for the latest financial year – a significant jump from the £5.3m he pocketed in 2023.
Close to a third of votes were cast against the group's remuneration report, which saw Schwimmer earn his fortune. The pay package includes a massive salary hike of £1.3m, up from £1m, coupled with a nearly doubled annual bonus of £3m [1]. Besides, £2.4m came his way through the London Stock Exchange Group's long-term incentive plan, a noteworthy increase from £1.8m [1].
Schwimmer was also awarded £734,000, a significant rise from £666,000 in 2023, linked to the growth in the group's share price [1]. This extravagant package came despite the London Stock Exchange witnessing a series of prominent delistings in 2024 [1].
Interestingly, Schwimmer was honored with 70% of his maximum potential bonus opportunity, which pegs at a staggering 300% of his base salary [1]. Contrary to the turmoil, the resolution supporting the remuneration report still passed at the group's annual meeting [1].
At the start of 2024, LSEG shares traded at 9,140p, only to end the year soaring at 11,285p [1]. However, the LSEG admitted that while a majority of shareholders approved of the resolution, the overall proportion was below the desirable 80% threshold [1].
According to an official statement, the LSEG board will actively respond to shareholder feedback, engaging them more closely to address their concerns [1]. The board will release an update on their progress within six months following the annual meeting, as required by the UK Corporate Governance Code. [1]
[1] – Insights derived from enrichment data.
- The London Stock Exchange Group (LSEG) acknowledged that although a majority of shareholders approved the remuneration report for CEO David Schwimmer, the overall proportion fell below the desirable 80% threshold.
- Despite the London Stock Exchange witnessing a series of delistings in 2024, Schwimmer was awarded a substantial remuneration package with a significant increase in his annual bonus.
- In response to shareholder feedback, the LSEG board has expressed its intention to engage shareholders more closely and to release an update on their progress within six months following the annual meeting.
- David Schwimmer's remuneration for the latest financial year, amounting to £7.8m, consisted of a salary hike, an annual bonus that nearly doubled, a long-term incentive plan, and additional awards, a notable rise from his 2023 earnings of £5.3m.
