Unlock Editor’s Digest Lock for Free
FT editor Roula Khalaf will select your favorite stories in this weekly newsletter.
The London Stock Exchange Group has launched a major uprising against the planned salary of CEO David Schwimmer after 30% of its shareholders voted against it.
A significant minority protested at the group’s annual meeting of the LSEG’s compensation policy. Under that, Schwimmer’s salary will rise from £5.1 million this year to £7.8 million. The Exchange and Data Group, part of the FTSE 100, had argued that Chief’s salaries should be benchmarked against US and domestic rivals.
The ISS, a proxy advisor, had previously urged shareholders to reject the Schwimmer package. The scheme “contrary to typical British market practices,” the advisor warned.
The massive vote on Thursday marked the second shareholder responsibilities in five years to LSEG’s board of directors for Schwimmer’s salary. The former Goldman Sachs Banker, who has been operating the group since 2018, oversees the transformation of the ownership of the London Stock Exchange with the $27 billion purchase of data provider Refinitiv in 2021.
The transaction helped transform the exchange operator into one of the 10 largest companies in the global financial group and FTSE 100, but has been plagued by criticism of focusing on the stock market.
Consultancy EY data shows that 88 companies listed or transferred their major listings last year, with only 18 new lists in the market.
Last year, LSEG shareholders passed their new compensation policy nearly 90%. This has made top executive performance benchmarks to other exchanges and data providers, including S&P Global and MSCI International.
Schwimmer’s performance is measured equally against two benchmarks: the FTSE boss and the leader of rival global competitors. The vesting threshold for comparison with industry peers is set to “Medium Performance” and receives a 50% payment rate, double current fee.
The company said it will continue to engage with shareholders and “consider further feedback” in response to Thursday’s vote. It added that the update will be published within six months in line with UK corporate governance standards.
LSEG also reported that its gross revenues would march with an 8.7% increase in quarter gross revenue as uncertainty about US President Donald Trump’s global tariff policy has encouraged transactions in foreign exchange, fixed income and commercial derivatives businesses.
Stocks fell 2.3% to £113.60 in London trading. Earlier this year, the stock hit a record high of £129.50.
