Shareholders revolt over pay at Pearson

PEARSON has been hit by a shareholder revolt over executive pay as the education publisher faces pressure to move its stock market listing to the US.

More than 30pc of votes cast at its annual meeting yesterday opposed company remuneration policy, which will hand chief executive Omar Abbosh a pay packet of up to £4m this year.

About 28pc of votes were also cast against the reelection of non-executive director Sherry Coutu, who chairs the remuneration committee.

It is the latest shareholder revolt over pay packets at the 180-year old publisher, which argues that the high salaries are needed to attract top international talent.

Mr Abbosh, who took over as chief executive in January, will be paid a base salary of £1m and is entitled to a maximum annual bonus of £3m, alongside an annual cash allowance and longterm incentive plan.

The former Microsoft executive was also handed a “golden hello” bonus worth up to £13m, as well as a oneoff payment of almost £250,000 to compensate for lost earnings after leaving his previous job.

The latest investor backlash at Pearson risks reigniting calls for the company to shift its listing from London to New York.

Despite being listed in London, Pearson makes the majority of its revenues in North America and its chief executive is based in the US.

Bosses have denied there are immediate plans to transfer the listing, but have not ruled out a move.

Pearson yesterday posted a 2pc rise in revenues in the first three months of the year thanks to strong demand for English language tests.

The company, which has transformed itself from a textbook publisher to a digi- tal education business, offers a range of tests for non-native speakers.

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