Pearson Proposes Revised CEO Pay Plan Up to £12.8 Million, Backed by Largest Shareholder Cevian Capital

Cevian Capital, Europe's largest activist investor and Pearson's biggest shareholder, stated it will back a revised pay arrangement for the education company's chief executive, Omar Abbosh. The maximum payout would be an increase of about 45 per cent on last year’s total potential package of £8.9 million, excluding the buyout by Pearson of share awards that he would have been entitled to under his previous employment.

Glass Lewis and ISS, two influential shareholder advisory groups, deemed Abbosh’s potential remuneration excessive. They recommended that shareholders vote against the executive pay proposals at Pearson’s annual meeting on May 1, 2026. ISS told investors that the substantial increase in the executives’ remuneration package and the resultant quantum are deemed excessive and are disproportionate to the company’s growth over the past few years.

Cevian Capital has built its stake in Pearson to just over 18 percent in recent months, making it the company's largest shareholder. The investor stated that the pay policy has clear pay-for-performance elements that would encourage long-term value creation.

Research from Deloitte showed that 16 of the 55 FTSE 100 companies that have published their annual reports for last year had proposed significant pay increases to executive pay.

Pearson suffered shareholder rebellions over changes in its executive pay policy in 2020 and 2023. In 2023, just over 46 percent of investors voted against an increase in payout for Andy Bird in a binding vote. Andy Bird, now 62 years old, was the former Disney executive who preceded Omar Abbosh as Pearson's chief executive.