Major Investors Demand Transparency on Low-Wage Workers

  • Next refuses to reveal number of workers paid below real living wage
  • Major investors push for transparency on pay rates
  • Scottish Widows, Axa, and Greater Manchester Pension Fund among those backing resolution
  • CEO Lord Wolfson earned £4.7m in 2021 as profits topped £1bn
  • Next opposes resolution due to cost implications and desire for pay flexibility

Retail giant Next is facing pressure from major investors, including Scottish Widows, Axa, and the Greater Manchester Pension Fund, to reveal how many of its 40,000 workers are paid below the real living wage of £12.60 per hour at its annual meeting this week. The company’s CEO, Lord Wolfson, earned £4.7m last year as profits surpassed £1bn. Next opposes the resolution due to its significant cost implications and desires flexibility in setting pay rates. ShareAction’s Catherine Howarth said retailers are not supporting their workers with a real living wage. The retailer reported an 11.4% sales increase in Q1, driven by warmer spring weather.

Factuality Level: 8
Factuality Justification: The article provides accurate and relevant information about Next’s investors calling for a report on worker wages, mentions the CEO’s pay, and discusses the company’s opposition to the resolution. It also includes quotes from ShareAction’s CEO Catherine Howarth and explains Next’s stance on the issue. The article is mostly factual with some details about the retailer’s financial performance.
Noise Level: 3
Noise Justification: The article provides relevant information about Next’s investors calling for a report on worker wages and the CEO’s high pay, but it also includes unrelated content at the end about Frasers Group launching its own retail. This makes the overall noise level slightly higher than ideal.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses Next’s financial performance, CEO’s salary, and investors’ demands for reporting on worker pay. It also mentions the retailer’s opposition to a resolution about paying a real living wage. However, it does not directly impact specific financial markets or companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailgazette.co.uk