Comment: Shareholders flex muscles - and want action By TERRY MURDEN Published on Friday 4 May 2012 00:00 THE board of Aviva must have thought that chief executive Andrew Moss had taken the sting out of a looming showdown with investors when he agreed to waive a near-5 per cent pay rise. It wasn't to be, and another annual meeting has been used by shareholders to vent their anger over executive pay. No sooner had the Aviva vote come through than Swiss bank UBS and Premier Foods also felt the backlash from disgruntled investors. Then came the bombshell that Sly Bailey was stepping down at Trinity Mirror, another casualty in the pay battle. Following so soon after last Friday's revolt over Barclays" pay plans, the issue is clearly building up a head of steam. Although it could push ahead with its current plans, Aviva's board is expected to re-visit its pay policy and come up with new plans. The problem for shareholders is that these votes are not legally binding, even if all investors vote one way. But the arguments for a change in culture and in the law are becoming overwhelming persuasive. Business Secretary Vince Cable, who is trying to introduce legislation to give shareholders more power over the issue, will be cheered by the latest developments which will be a focus of a new inquiry. As Barclays" investors cast their votes, the Treasury select committee was announcing details of its investigation into pay at financial services companies. A root and branch review of the operation of cosy remuneration committees has to be part of the probe so that their objectives are more closely aligned with those of shareholders. It's important to retain some perspective in this debate and appreciate that big jobs will always command big salaries. However, the directors must meet key performance targets and pay due regard to the gap emerging between them and those at the sharp end of their businesses. Philips" tough job to "re-establish" Morrisons M0RRISONS was once seen as the upstart north-of-England invader of the supermarket sector, eating up market share from its bigger rivals under the guidance of its Dutch master Marc Bolland. But the company that introduced a more homely market-style alternative to the drearily anonymous aisles of its opponents is failing to keep up with the latest trends. Chief executive Bolland's departure to Marks & Spencer seems to have coincided with gains for those at the top and bottom end of the sector - Waitrose and Lidl - and the revival of Asda and Sainsbury's who have already muscled into market leader Tesco's share. Morrisons" ace card was price, but both Asda and Sainsbury's have closed the gap. Adding to Morrisons" troubles is that it is behind Sainsbury's and Tesco in developing corner shop convenience stores and online shopping. There is no loyalty card or home delivery option for shoppers. Dalton Philips, who succeeded Bolland, is now planning a £400 million revamp that will bring Morrisons up to speed. But this is a high-risk strategy that threatens to leave the chain squeezed between the discounters and the big players. Workers in dark as SPX drip-feeds information JUST what is looming at SPX, the US company that acquired Glasgow-based Clyde Union Pumps from Scottish entrepreneur Jim McColl? When The Scotsman followed up rumours of job losses several weeks ago, we were met with a wall of silence. No-one at the former Weir Pumps plant in Cathcart would comment, referring enquiries to its head office in North Carolina where we met with a similar response. I was told 175 jobs were on the line, and then that it would involve just temporary workers who were expecting to be let go anyway. Neither Scottish Engineering nor the trade union Unite knew anything about it. The company has now officially announced the possibility of "restructuring" without specifying what that means. We know that co-chief executive Thomas Burley quietly left in January and there is talk of a reduction in overheads as the new owner reshapes the company. No doubt we'll get the full picture when SPX is ready to talk.