DSG International, the electricals retailer, is expected to win the backing of some of its biggest shareholders for a salary sacrifice scheme, even though the controversial arrangement has come under attack from an investor advisory group.

Standard Life, DSG’s biggest shareholder with a 12 per cent stake, is expected to back the scheme, which is likely to see John Browett, DSG chief executive, sacrifice 25 per cent of his salary in return for share options. Standard Life declined to comment. Pirc, the investor advisory service, took issue with the proposal because, unlike the retailer’s other option plans, this scheme is not based on the participants’ performance. The Association of British Insurers issued an “amber top” alert, highlighting that the proposal might breach its guidelines on best corporate governance practice.