BAT pay-deal haggling continues

In an attempt to avert a rebellion by shareholders at the company’s annual general meeting on April 27, British American Tobacco has watered down ‘bumper’ new pay packages for CEO Nicandro Durante and CFO Ben Stevens, according to a Sunday Telegraph story relayed by the TMA.

BAT’s remuneration committee is said to have refrained from hiking the base salaries of the two executives and instead proposed linking the salaries to the performance-based long-term incentive plan.

Under the plan, the executives will have to generate net turnover growth of between three and five percent, rather than the original target of two to five percent.

Investors are said to have been resisting for months attempts by BAT’s remuneration committee to sweeten the pay of Durante and Stevens, arguing they are already well-rewarded.

Durante took home £1,155,000 in base pay in 2014-15, while Stevens received £841,500.

Including salary, pension, bonuses, and other benefits, the BAT chief netted £3.6m in 2014.

However, BAT told investors last week it would make concessions.

These would also include boosting the minimum shareholding requirements and an agreement to publish the targets in BAT’s short-term incentive plan.

But the firm is pressing ahead with plans to boost the total potential pay-out the pair may receive under long term incentive plans.

Durante could get five times his salary, up from four times, and Stevens could get three-and-a-half times.