Next is ignoring demands from its biggest investors to disclose at its annual meeting later this week how many of its 40,000 employees receive wages below the actual living wage of £12.60 per hour.
According to sources, the resolution is supported by a group of institutional shareholders that manage over US $ 1.32 trillion in assets, including Scottish Widows, Axa, and the Greater Manchester Pension Fund.
It comes as Next’s chief executive, Lord Wolfson, received US $ 6.21 million last year as the retailer’s profits exceeded US $ 1.32 billion, according to the company’s most recent annual report.
Because of the resolution’s substantial financial ramifications, the retailer objected to disclosing it for its meeting on 15th May. Additionally, it stated that rather than leaving the decision to a third party, it preferred to have the freedom to determine its own compensation rates.
Then went on to say that determining its pay rates required striking a careful balance between the interests of customers, employees (many of whom are also investors and savers), and investors (who are ultimately savers and pension funds).
Following stronger-than-expected first-quarter sales due to warmer spring weather, Next increased their earnings prediction last week.
In the 13 weeks ending 26th April, the retailer reported a 11.4 per cent growth in sales, which was higher than the 6.5 per cent increase it had predicted and resulted in a US $ 73 million boost.
