Universal Music Group (EURONEXT:UMG) is facing potential shareholder backlash at its upcoming AGM, prompted by advisory firm Glass Lewis's recommendation to reject a £119 million payout for CEO Lucian Grainge.
The payout includes a £79 million share-based bonus, intended to compensate for a salary reduction and loss in share value following UMG's spin-off from Vivendi in 2021.
Despite UMG's status as the largest music company globally, with artists like Taylor Swift and Coldplay, Glass Lewis criticises the bonus for not aligning sufficiently with performance, potentially undermining incentive systems.
This comes amid broader shareholder discontent, evidenced last year when 40% voted against the remuneration report.
The advisory firm's stance reflects a growing trend of shareholder rebellions against executive pay, as seen recently at Smith & Nephew and AstraZeneca, and anticipated at Renault's upcoming meeting.