Incoming CEO Johnny Thomson was recruited from Compass Group, after the previous candidate to replace the long-serving CEO quit after only 128 days in post. Thompson’s salary is set at very competitive levels for the company’s size, and he is also eligible to receive exceptional LTIP awards of up to 2.5 times salary over the next three years. We also note that the Remuneration Committee did not pro-rate his annual bonus for the year under review to reflect time served. The company has stated that a candidate with the appropriate experience and skills was not available in the FTSE250, and they needed to come up with a package sufficient to lure Thomson from a FTSE100 company…The company has committed to engage further with shareholders on the issue later in the year.
- Approve Remuneration Report
J.P. Morgan Asset Management voted against the Remuneration Report, and abstained in relation to the binding Remuneration Policy…[the incoming CEO is] eligible to receive exceptional LTIP awards of up to 2.5 times salary over the next three years…the Remuneration Committee did not pro-rate his annual bonus for the year under review to reflect time served…
The Remuneration Policy was narrowly passed, with 44.2% of shareholders voting against.