Freeport sailing into new bonuses storm

THE shopping malls company that suffered a huge shareholder revolt over boardroom pay last year is bracing itself for another mutiny next week.

Freeport faces fresh criticism at its annual meeting on Monday after continued concern among investors over an executive bonus scheme. Corporate governance activist Pirc is calling on shareholders to oppose the company's remuneration policy, and institutional investors look like following suit.

F&C Asset Management, which holds a 3.8% stake in the business, plans to vote against Freeport's pay policy.

The Association of British Insurers, which orchestrated last year's 81% No vote, still has an amber-top warning on the company, signalling that issues remain.

The row centres on a bonus scheme that rewards directors and staff for specific property developments. F&C corporate governance director Richard Singleton said: "Incentives should be based on the performance of the company as a whole, not individual projects.î

Freeport brought in consultants Towers Perrin to improve its pay policy last year after causing an uproar by compensating directors for cutting their contracts to one year.