Arm Faces Shareholder Revolt Over $800M Pay Plan, Advisory Firms Object

Arm Holdings faces investor backlash over a proposed compensation plan for CEO Rene Haas worth up to $800 million. The plan requires Arm to reach a minimum market valuation of $1 trillion. Further payout tiers trigger at valuations of $1.5 trillion and $2 trillion.

Advisory firms Institutional Shareholder Services (ISS) and Glass Lewis recommend shareholders vote against the package on September 9. Both firms labeled the potential award as excessive. ISS noted these plans are uncommon in the UK and risk creating overly large payouts.

Arm defended the proposal as necessary to remain competitive with U.S. compensation standards and its Nasdaq listing. ISS also recommended voting against the board re-election of Haas and SoftBank Chairman Masayoshi Son. These recommendations stem from concerns regarding board independence.