Scandalous pay on AIM needs to stop – these companies are getting away with daylight robbery!
A growing number of directors of AIM companies are receiving excessive pay, merely for delivering ordinary results. Most institutional investors appear to turn a blind eye to this, or worse aren’t even aware of it. Our Blog here highlights some of the worst examples (and a rare good one), where outside shareholders really are getting a raw deal!
The level of remuneration awarded to senior management of small companies should be scrutinised far more by investors given the significance of this on distributable profits for all shareholders to enjoy. Our recent Blog here on wholesaler and distributor of alcoholic drinks Conviviality (AIM:CVR), highlighted the huge level of remuneration awarded to the Executive Directors of this business relative to their ‘real’ achievements to date. As we commented, we are staggered that large institutional shareholders, who have supported Conviviality’s various fund raisings are comfortable dishing out huge rewards to management simply for making costly acquisitions and saddling a company with…