Norway's $1.4 trillion sovereign wealth fund, the world's single largest stock market investor, will vote in favour of Centrica's CEO pay package at the British Gas owner's annual general meeting on June 13, the fund said on Thursday.
Centrica is proposing a pay package worth 4.5 million pounds ($5.6 million) for 2022 for CEO Chris O'Shea, following record profits driven by a surge in energy prices.
However, the payout also comes as millions of British households struggle to pay their energy bills and with the company under scrutiny over practices of forcefully installing prepayment metres in some vulnerable customers' homes.
The Norwegian fund will vote in favour of the package, in line with the recommendation of Centrica management, it said on its website. It owned 0.63% of Centrica shares at the end of 2022, worth $42.8 million, according to fund data.
British asset manager Abrdn announced it would vote against Centrica's remuneration report, saying it poorly reflected share price performance and the impact of the prepayment metre probe.
($1 = 0.8060 pounds) (Reporting by Nora Buli Editing by Gwladys Fouche and Mark Potter)