Shareholders in Schroders have been urged by an proxy adviser to block the reappointment of Michael Dobson as chairman of the FTSE 100 listed fund manager, as well as the election to the board of the daughter of the late Bruno Schroder to its board.
Glass Lewis has recommended that at next month's annual meeting investors vote against the company's pay report, as well as the election of Leonie Schroder, claiming the 45-year-old lacks the relevant experience needed to challenge the firm's executive team.
The advisory firm added: "We do not believe a sufficiently robust rationale has been presented for the election of nominee [Leonie] Schroder, and question whether, in representing her family interests, she has sufficient core industry or sector experience to effectively challenge management."
We do not believe a sufficiently robust rationale has been presented for the election of nominee [Leonie] Schroder, and question whether, in representing her family interests, she has sufficient core industry or sector experience to effectively challenge management"
Schroder was appointed to the board in March. She is listed as director of a number of other family enterprises and charity trusts but has little experience of the finance sector.
It has also urged investors to block the re-election as chairman of Michael Dobson, who Glass Lewis says is responsible for the board's make-up and "should be held accountable for this failure".
The advisory group said it had "severe reservations" about supporting the pay report due to the size of the bonuses granted to chief executive Peter Harrison. Harrison, who has been at the helm since 2016, was given a £6m bonus last year on a £500,000 salary.
"We remain concerned that the annual bonus plan has consistently led to unnecessarily high payouts," Glass Lewis said. "We cannot recommend that shareholders support this proposal."
Harrison's bonus has also been criticised by Institutional Shareholder Services, a fellow proxy adviser. ISS and Glass Lewis are the two biggest proxy advisers and typically hold sway with up to 25% of a company's shareholders.
The Schroder family owns 35% of the business. In a stockmarket announcement in March, Dobson said Leonie Schroder's appointment reflected "the commitment to Schroders of the principal shareholder group, which has been an important part of Schroders' success over the long term".
The Schroders AGM will be held in London on 2 May.