Associated British Foods - AGM 04 December 2020
Item 2: Remuneration report
Amid the Covid-19 pandemic, Associated British Foods (ABF) closed all Primark stores in Europe and the US. So far Covid-19 has cost the group some £2bn of sales, £650m in lost profit and a cash outflow of £800m. ABF received £98m of state help under government job retention schemes across Europe. The Board decided not to declare dividends for the FY2019/20. The Total Shareholder Return lost 15.3% during the financial year under review and 34.4% over the last three years.
In light of the Covid-19 outbreak, ABF reduced executive salaries by 50% and Non-Executive Directorsnfees by 25%. We appreciate the way the Remuneration Committee assessed the Covid-19 impact on the Directors' remuneration. No bonus is paid despite the achievements of personal performance. No LTIP vest. No discretion was applied to upward any incentive outcomes.
The CEOns accrued pension under a defined benefit scheme reaches £670,637 (+4.1%) corresponding to 61.5% of his salary. It should be the highest pension in the FTSE100 index. ABF does not intend to reduce the CEO's pension benefit to the wider workforce level, which we disapprove strongly.
Associated British Foods is an international food, ingredients and retail group. Co. operates in five segments: Grocery, which manufactures grocery products, including hot beverages, sugar and sweeteners, vegetable oils, bread and baked goods, cereals, ethnic foods, and meat products; Sugar, which grows and processes sugar beet and sugar cane for sale to industrial users; Agriculture, which manufactures animal feeds and provides other products and services for the agriculture sector; Ingredients, which manufactures bakers' yeast, bakery ingredients, enzymes, lipids, yeast extracts and cereal specialities; and Retail, which buys and merchandises value clothing and accessories.
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