TUI governance under fire from shareholder group
LONDON Feb 13 Travel group TUI has been criticised for its arrangements on governance and executive pay by a leading shareholder body, which said that the tour operator's approach falls short of British standards.
Ahead of TUI's results and annual general meeting on Tuesday, Institutional Shareholder Services (ISS) criticised the tour operator for not giving its shareholders a vote on executive pay and for using transaction-related bonuses.
Though incorporated in Germany, the group's main listing has been on the London Stock Exchange since the 2014 merger of TUI Travel and TUI AG in 2014.
"In general, we find that while TUI's overall governance arrangements are consistent with German market practice, there are a number of areas where the company falls short of UK investor expectations," the ISS report said.
"In addition, some elements of the company's approach to executive pay fall short of expected UK practice."
A TUI representative was not immediately available for comment.
Last week rival Thomas Cook encountered significant investor dissent at its AGM, with about a fifth of shareholders voting against its directors' remuneration.
(Reporting by Alistair Smout; Editing by David Goodman)