Arm is facing a potential shareholder revolt over plans to hand its chief executive Rene Haas an "excessive" bonus of up to $800m. Shareholder advisory firms Institutional Shareholder Services and Glass Lewis have told investors to vote against the scheme, which would reward Haas if he could turn Arm into Britain's first trillion-dollar company. Under the proposed "value creation plan," Haas would receive escalating share awards if Arm's valuation reached $1tn, with further tranches at $1.5tn and $2tn. ISS said the plan raises concerns over potentially excessive large gains and is unproven in improving performance, while Glass Lewis also described the package as excessive. Shareholders will vote on the pay scheme at the company's annual meeting on September 9, but rejection is unlikely because SoftBank owns 86% of Arm's shares.
SoftBank Group Corp.SoftBank owns 86% of Arm; potential shareholder revolt over CEO pay may pressure governance, but SoftBank's control limits impact.
SoftBank Corp.
