First Group executive pay

08 July 2014

Mick Whelan has spoken out after shareholders and influential investor advisory bodies expressed concern, ahead of the company’s AGM in Aberdeen on 16 July, about soaring executive pay at FirstGroup. The row blew up after it was revealed that the take home pay package of Tim O’Toole, the firm’s chief executive, has risen by a staggering 86% in the last financial year – well ahead of performance, profits and dividends. Mick said: ‘I’m not surprised that the Institutional Voting Information Service has issued an amber top warning about FirstGroup, that Pensions & Investment Research Consultants has urged shareholders to oppose the company’s remuneration policy, and that Thomas Sandell, a leading shareholder, has attacked the pay package for Mr O’Toole. FirstGroup, like many firms, and this isn’t confined to the railway industry, say they can’t afford to pay their staff, the men and women who help create their company’s wealth, any more while giving a few people at the very top quite extraordinary pay increases. No wonder people are concerned. It’s also another example of how money leaks out of the privatised railway industry.'