Today I received notification of a General Meeting of Gresham House Energy Storage Fund (GRID). They are wanting to amend the previously agreed Remuneration Policy to give the directors an annual pay increase in line with the UK Consumer Price Index.
Is that reasonable? I don’t think so.
If everyone claimed such an increase then it would drive inflation higher as a matter of routine. The directors of this company should face up to the reality that we are all poorer as the result of high energy and other product prices from the war in Ukraine. They should not be protected against inflation as nobody else is.
In addition the wording of the resolution only refers to an “increase” but what if there is a general fall in prices. Are the directors going to take a pay cut?
This resolution is badly worded and is wrong in principle so I have voted against it. There may be some justification for reviewing the remuneration rate if inflation is high but it should be based on market circumstances not justification, and not be automatic.
But I had to vote via post because the on-line voting system did not recognise the Control Number.
Roger Lawson (Twitter: https://twitter.com/RogerWLawson )
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