Shareholders at Next have revolted against the company over its alleged lack of transparency when it comes to wages. Such a sentiment was shared in the British retailer’s latest Annual General Meeting, during which over 26 percent of shareholders voted for a resolution calling for the disclosure of wage-setting principles and practices.
In a statement addressing the results, Next reaffirmed that its board did not agree with the resolution, which was requisitioned by shareholder ShareAction, yet “it recognises the value of providing more clarity on how wages are determined and managed at Next”.
The company continued: “The company has a long-standing commitment to transparency and aims to offer shareholders meaningful insight into its decision making. Accordingly, we welcome the suggestion and will expand our disclosure on wage-setting principles and practices in our next Annual Report.”
ShareAction had brought forth the resolution, backed by a group of institutional shareholders, ahead of the AGM, with the hope that Next would reveal how many of its 40,000 staff were being paid below real living wage.
Next responded by requesting for shareholders to vote against the proposal, stating in its latest annual report that it “did not believe it was appropriate to produce additional bespoke reports beyond its current disclosures”, which it claimed were already aligned with its legal obligations.
While Next said it pays retail workers in accordance with statutory requirements, any increases to its wages would come with “significant cost implications” and that it wished for “flexibility” to set its own pay rates rather than outsourcing such decisions to a third party.
The real living wage in the UK is set at 12.60 pounds an hour, sitting higher than the national minimum wage of 12.21 pounds, or 10 pounds for those between 18 and 20. In London, the minimum wage amounts to 13.85 pounds.