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Micro Focus to change pay policy after shareholder backlash

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By Reuters
Micro Focus to change pay policy after shareholder backlash

(Reuters) – Britain’s Micro Focus International <MCRO.L> is planning to make changes to its proposed pay policy, the software firm said on Thursday, after half its shareholders voted against it earlier this year.

The company said shareholders had raised concerns over issues including the structure of incentive arrangements, leading it to review the scheme.

Micro Focus, which has struggled to integrate $8.8 billion (7.15 billion pounds) of assets bought from Hewlett-Packard in 2017, last month said it will miss its full-year revenue target, prompting an accelerated operations review.

Shareholders also raised concerns over changes made last year to additional share grant awards made after the HP acquisition and over an additional long-term incentive plan award made to the finance chief as part of his recruitment package.

Micro Focus has grown by acquiring legacy technology such as mainframe computer software used by banks, retailers and airlines, driving shareholder returns with a ruthless focus on its bottom line.

A new remuneration policy, which will be developed alongside the strategic review, will be put to shareholders at the company’s 2020 annual general meeting.

(Reporting by Tanishaa Nadkar in Bengaluru; Editing by Jan Harvey and Alexandra Hudson)