Shareholders at DSG International are due to vote today on a controversial salary sacrifice arrangement which would see its chief executive sacrifice 25% of his salary in return for share options.
The Association of British Insurers (ABI) issued an ‘amber-top’ report, highlighting that the proposal constitutes a breach of its guidelines on corporate governance practice. In addition, the report also served to notify investors that the arrangement was not the norm.
A spokesperson at ABI said: “The salary sacrifice aspect stood out as unusual, that is why we flagged it up.”
Insight Investment, which holds shares in DSG International, has confirmed it is in favour of the proposal. Meanwhile, reports suggest that DSG International’s biggest shareholder Standard Life is expected to back the arrangement, through which John Browett would sacrifice 25% of his salary in return for share options.
DSG International owns stores such as Currys, Dixons Travel and PC World. An update on this story will appear on our home page following today’s annual shareholder meeting.