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London Stock Exchange Group has suffered a significant revolt over the planned pay for chief executive David Schwimmer after 30 per cent of shareholders voted against it.
A significant minority protested at the group’s annual meeting against LSEG’s remuneration policy, under which Schwimmer’s pay will rise to £7.8mn from £5.1mn this year. The exchange and data group, which is itself part of the FTSE 100, had argued that its chief’s pay should be benchmarked against US and domestic rivals.
ISS, the proxy adviser, had previously urged shareholders to reject the package for Schwimmer, citing concerns over the vesting plan for a long-term incentive scheme. The scheme was “contrary to typical UK market practice,” the adviser warned.
The large vote on Thursday marked the second rebuke by shareholders in five years to LSEG’s board over Schwimmer’s pay. The former Goldman Sachs banker, who has run the group since 2018, has overseen a transformation of the owner of the London Stock Exchange, with the $27bn purchase of data provider Refinitiv in 2021.
Although the deal helped turn the exchanges operator into a global financial group and one of the 10 largest companies on the FTSE 100, it has been dogged by criticism that it has lost its focus on the stock market.
There were just 18 new listings on its markets last year — the lowest total since 2010 — while 88 companies delisted or transferred their primary listing, according to data from consultancy EY.
LSEG shareholders last year passed by nearly 90 per cent the new remuneration policy, which benchmarked the performance of its top executives to other exchange and data providers including S&P Global and MSCI International.
Schwimmer’s performance will be measured equally against two benchmarks: FTSE bosses and the heads of rival global competitors. The vesting threshold for comparison with industry peers is set at a “median performance”, for which he will receive a 50 per cent payout ratio, double present rates.
The company said it would continue to engage with shareholders and “carefully consider any further feedback” to Thursday’s vote. It will publish an update within six months in line with UK corporate governance standards, it added.
LSEG also reported an 8.7 per cent rise in total income in the first quarter to March as uncertainty over US President Donald Trump’s global tariff policy boosted trading in its foreign exchange, fixed-income and over-the-counter derivatives business.
Shares closed down 2.3 per cent to £11.35 in London trading. Earlier in the year the stock hit a record high of £12.95.
