Drop bonuses, bosses say, as a dozen London-listed companies suspend or cut dividends
The bosses were asked to cancel their bonuses last night when a dozen London-listed companies suspended or lowered their dividends.
Another blow to investors who had recovered from the stock market in the past few weeks were clothing retailer Joules, pub chain Shepherd Neame, and home builder Crest Nicholson among the companies that failed to deliver on their pledge to hand over millions of pounds to savers because they feared that the outbreak of the corona virus could leave them shortly at the box office.
Direct Line insurer announced that it would suspend its £ 150m share buyback after taking up just £ 29m worth of shares, and National Express bus operator admitted that it had also reviewed its dividend .
Divis eliminated: clothing retailer Joules, pub chain Shepherd Neame and home builder Crest Nicholson were among the companies that refused to promise to give millions of pounds to savers
Now the city’s numbers are asking companies to consider docking bonuses to save more money and save jobs.
Former City Minister Lord Myners said: “It is a duty of the Board of Directors to take measures to protect and maintain business. If holding more cash increases resilience, you should. ‘
He added that pension funds and savers may be dependent on dividends as income, so companies should try to restore payouts once stability is restored.
Overall, according to AJ Bell, companies have suspended or canceled investor handouts in excess of £ 600m this year.
Bookmaker William Hill, hit by sports cancellations, has cut its £ 46 million dividend.
The software giant Micro Focus and the Shoe Zone also paid out £ 149m. Luke Hildyard, director of the High Pay Center, said: “It is true that these companies are paying dividends to protect workers’ jobs, but they should also consider limiting executive bonuses and compensation.”
Other companies that dropped dividends yesterday were Paypoint, Playtech, New River, PPHE, RM, Portmeirion, Quartix, Space and People and Elementis.