(Bloomberg) -- A prominent proxy-advisory firm encouraged London Stock Exchange Group Plc shareholders to vote down a plan that could allow the company to more than double Chief Executive Officer David Schwimmer’s pay for his work this year. 

LSEG has asked investors to approve a revamped remuneration policy at the company’s annual meeting of shareholders in the coming weeks. With the changes, Schwimmer could be handed as much as £13.2 million ($16.7 million) for his work this year, up from a maximum of £6.35 million in 2023, according to Glass Lewis & Co.

Glass Lewis, a major voice on annual shareholder votes, questioned the scale of such a raise and said it would prefer to see increases doled out over time. The new package would put Schwimmer on track to be one of the best paid CEOs in the FTSE 100, the advisory firm found. 

“We do not believe that the company has sufficiently rationalized an increase of this magnitude in a lump-sum approach - particularly given the CEO’s pay relative to UK peers,” Glass Lewis said in its report. 

Since Schwimmer took the reins at LSEG in August 2018, the firm’s stock has climbed 115%, giving it a market capitalization of £50 billion. A former investment banker at Goldman Sachs Group Inc., Schwimmer led the company’s $27 billion acquisition of Refinitiv, which kicked off a new era for the company where the majority of its revenue comes from data. 

When crafting the proposed changes to its remuneration policy, the board of the stock exchange considered the fact that many of its top executives have been recruited away in recent quarters, including Chief Financial Officer Anna Manz and Chief Operating Officer David Shalders. 

“In formulating our revised policy, and following consultation with nearly 100 shareholders, we are focused on securing and retaining the caliber of talent,” a LSEG spokesperson said. “We have also aligned executive compensation with the median of our global sector peer group and reinforced a pay-for-performance philosophy.”

Another prominent shareholder advisory firm, Institutional Shareholder Services Inc., encouraged shareholders to vote for the proposed changes to the remuneration policy, though it said that endorsement “is not without concern.” 

“The proposed changes to variable pay opportunities are significant, and concerns may be compounded further given the salary increase granted to David Schwimmer,” ISS said in its report. “Qualified support for the remuneration policy is considered warranted, acknowledging the company’s growth in recent years with the pay arrangements reflecting the increased size and complexity of the business.” 

LSEG’s annual shareholder meeting is scheduled to take place on April 25. The Sunday Times earlier reported on the ISS and Glass Lewis reports. 

Bloomberg LP, the parent company of Bloomberg News, competes with Refinitiv to provide financial news, data and information.

©2024 Bloomberg L.P.