Leave it to that one major major shareholder to rain on your parade. Well, this is likely how Vodafone must be feeling right now I would imagine.

Vodafone is facing a possible rebellion from a major shareholder despite pledging to return £9bn to investors, one of the biggest single cash returns in UK corporate history.

Standard Life Investments has made a thinly veiled threat to vote against the re-election of key directors at the mobile phone giant’s annual meeting, including the chief executive Arun Sarin and remuneration committee chairman Luc Vandevelde.

In a statement, the insurer’s investment director of UK equities, Wesley McCoy, described as “appropriate” Vodafone’s move to gear up for greater returns. “However, we - and I believe the market - remains sceptical on Vodafone’s ability to realise its earnings potential,” he said.

Standard Life’s head of corporate governance, Guy Jubb, said: “We will be considering our voting position very carefully at Vodafone’s forthcoming annual meeting [in July].”

Some institutions are unhappy with the level of consultation they have had with Mr Vandevelde, the former Marks & Spencer chairman, over controversial plans to give easier bonus targets for executives…. Source: telegraph.co.uk

[tags]vodafone,investment,carrot,corporate governance[/tags]