Economy

“Too often excuse Corona for scrapping dividend” | Financial

This is the opinion of board chairman Peter Harrison van Schroders, the largest listed British asset manager and shareholder in many European and also Dutch companies.

According to Harrison, in an interview with the Financial Times, directors all too often misuse the consequences of the coronavirus outbreak to avoid paying dividends to shareholders.

The duped shareholders include, besides the pension funds, other investors in the companies. According to Schroders in the Financial Times, this concerns tens of billions in unpaid dividends.

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In the UK alone, 176 companies cut dividends this year, 30 during the last quarter.

Some companies had no choice, Harrison acknowledges. “There are examples of companies that use this (crisis, ed.) As an excuse for not paying. It really worries me, ”said the CEO, referring to the dividend as a source of income for many retirees.

In May, competitor Janus Henderson warned Global Investors that nearly $ 500 billion in revenue worldwide would be wiped out because the pandemic was weighing on operating income and earnings.

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