More than a third of Britain’s largest companies are planning to freeze executive pay in 2013 – the highest number since 2009. In its annual pay survey, PricewaterhouseCoopers found that 38 percent of FTSE 100 companies were planning to freeze salaries this year, while nearly half said directors were unlikely to see a rise in their bonuses. The news follows the so-called ‘Shareholder Spring’ where a number of companies, including Aviva, Cairn Energy, Prudential, Cookson and WPP, faced investor rebellions over pay. The survey found that remuneration committees are keen to avoid a repeat of this and are cutting pay, despite generally improved financial performance. (Telegraph)
Women smash glass ceiling at defence giants
One of the last bastions of male-dominated industry has fallen with the appointment of women to run two of the world’s largest defence companies. Marillyn Hewson and Phebe Novakovic took over as the chief executives of Lockheed Martin and General Dynamics respectively at the start of the year, pushing the number of female bosses in the Fortune 500 to 21; a new high — albeit still only 4.2 percent of the total. In contrast to the Fortune 500, the number of women running FTSE 100 companies has halved, with the departure of Cynthia Carroll at Anglo American and Dame Marjorie Scardino at Pearson. The only female bosses in the FTSE 100 now are Angela Ahrendts, of Burberry, and Alison Cooper, of Imperial Tobacco. (Times*)
Corporate Reputation
Apple shield $94bn from US tax
Apple has been shielding almost $1bn a week from the tax authorities in America. The company, already under scrutiny over its tax liabilities in Britain, used a network of corporate offshoots in low-tax countries to protect more than $11bn in the final quarter of last year. Apple, whose tax-avoidance activities are legal but increasingly unpopular with the public, has sheltered a total of $94bn (£59bn) from the US taxman over the years, filings show. The revelations threaten to increase the pressure on Apple – last week toppled by Exxon Mobil as the world’s most valuable company – to pay more corporation tax on both sides of the Atlantic. (Times*)
Environment
Green procurement ideas inspire Thai businesses
Companies in the Thailand Business Council for Sustainable Development (TBCSD) recently launched a ‘Green Label’ campaign to promote green procurement among Thai companies, drawing support from manufacturers and consumers. Prasert Bunsumpun, chairman of the organisation, said the business sector should play a major part in ensuring global sustainability by promoting green procurement and producing environmentally friendly products. Despite growing action from business on environmental issues globally, Thailand has thus far remained impervious to tighter regulation or green initiatives. It is hoped that this new initiative marks a change in attitude. (The Nation)
Supply Chain
McDonald’s to only serve MSC fish
McDonald’s USA has said it will become the first national restaurant chain to serve fish bearing the Marine Stewardship Council eco-label at all of its US locations. McDonald’s, which uses MSC-certified wild-caught Alaska Pollock for its ‘Filet-O-Fish’ sandwich, will begin displaying the MSC label on product packaging, in-restaurant communications and external marketing this year. The company actually certified its fish in 2005, but since then has audited its supply chain to ensure the fish’s sustainability and traceability. McDonald’s introduced the same MSC certification for all its European restaurants in 2011. (Environmental Leader)
H&M and WWF develop global water strategy
WWF and the clothing retailer, H&M, have entered into a three-year partnership to develop a global water strategy to be implemented across the company’s 48 national markets and 750 direct suppliers. An evaluation of all H&M’s efforts and challenges in connection with water, conducted in 2012 by WWF and H&M, will form the basis for the new strategy, to be implemented this year. H&M designers and buyers will receive additional training about how raw material production affects water, and other measures will be taken to improve internal water efficiency. Both organizations will continue working with the Better Cotton Initiative to reduce water and pesticide use during the cotton growing process. (Environmental Leader)
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