Investors in Saga, the approach to life model aimed on the gray market, have been urged to reject its boardroom pay report forward of its annual assembly subsequent week.

Sky News has seen a report from Institutional Shareholder Services (ISS), the influential proxy adviser, which mentioned the cost of a six-figure bonus to chief government Euan Sutherland was inappropriate.

Mr Sutherland, a former boss of Superdry and the Co-op Group, was awarded a £386,000 bonus for final 12 months regardless of the continuing suspension of the corporate's dividend and a revenue warning.

In its report, ISS mentioned this was "a significant concern".

"That the annual bonus outcomes weren't aligned with Company efficiency or the broader shareholder expertise, with a substantial majority of the bonus payout being on account of strategic aims somewhat than monetary metrics, exacerbates this.

"This is coupled with concerns on the overall opportunity of quantum, including the positioning of the EDs' salaries relative to peers, and the opportunity available under the Saga Transformation Plan."

Glass Lewis, the opposite main proxy adviser, really useful a vote in favour of the remuneration report, whereas IVIS, the voting advisory service operated by the Investment Association, issued an amber-top alert, which means Saga's boardroom pay was not with out concern.

Saga, which has seen its shares hunch by an extra 43% over the past 12 months, holds its AGM subsequent Tuesday.

A spokesperson for Saga mentioned: "Executive remuneration at Saga, together with bonuses, is awarded according to the group's remuneration coverage.

"This was put in place following consultation with shareholders and was overwhelmingly approved at last year's AGM.

"Saga has made vital progress over the previous monetary 12 months, delivering disciplined execution of our turnaround technique towards a backdrop of unprecedented problem in our markets.

"The work completed last year strengthens the business and will enable Saga to return to the delivery of long-term sustainable growth for investors."

Content Source: information.sky.com