Next faces shareholder pressure over worker pay

Shareholders in Next are intensifying calls for the retailer to address its dependence on low-paid labour by adopting the real living wage for all employees. Ahead of Next’s annual general meeting, a coalition of 12 investors, including BNP Paribas Asset Management and Border to Coast Pension Partnership, will urge the company to raise worker pay beyond the National Living Wage. This follows growing concern over the disparity between executive pay and frontline wages, with chief executive Simon Wolfson earning £7.4 million last year—more than 240 times the salary of many lower-paid staff. The investor group highlights that 93 percent of Next’s workforce currently receives only the legal minimum wage, raising questions about the sustainability of such pay practices amid rising living costs. They argue that improving pay would not only reflect the true cost of living but also help secure long-term business resilience. Last year, 27 percent of shareholders supported a resolution demanding greater transparency on pay structures, signaling significant investor concern over wage policies. Next has pushed back against these demands, citing shrinking profits attributed primarily to labour costs. However, investors stress that low and stagnant wages contribute to broader economic challenges, including increased reliance on government or charitable support among workers. Colin Baines of Border to Coast Pension Partnership emphasized that stagnant wages risk dampening consumer demand in key markets, potentially affecting Next’s future growth. The shareholder pressure reflects a wider movement among institutional investors advocating for fairer pay practices and greater corporate responsibility. By encouraging Next to become an accredited living wage employer, investors hope to foster a more equitable workplace while enhancing the company’s reputation and sustainability in a competitive retail environment.