(Reuters) – Royal Mail Plc’s (RMG.L) shareholders rejected a pay package deal for its senior executives on Thursday.
FILE PHOTO: A Royal Mail put up field stands on the sting of a area close to Lymm, northern England, May 9, 2016. REUTERS/Phil Noble/File Photo
The put up and parcels company stated about 70.17 p.c votes forged by shareholders on the annual assembly had been towards the decision on the director’s remuneration report.
Shareholder advisory companies Institutional Shareholder Services (ISS) and Glass Lewis had advisable that shareholders vote towards the pay packages.
Royal Mail stated it might seek the advice of with shareholder and consultant our bodies as a part of its scheduled evaluation of the remuneration coverage. The evaluation is because of happen in autumn.
One of the issues from shareholders is the company’s fee to retiring CEO Moya Greene on her exit, estimated to be 915,000, Royal Mail stated.
“Support for the remuneration report is not considered warranted due to termination payments to the former CEO which exceed UK market norms and also include an element of guaranteed bonus payments,” ISS stated in a report earlier this month.
ISS added the company’s treatment of Greene’s bonus isn’t thought-about to be on a cost-neutral foundation for shareholders and the disclosures in earlier years have fallen in need of correct illustration on termination provisions.
The company defended the fee saying the preparations have been in place since 2010 when Royal Mail was state owned.
However, it stated related provisions had not been replicated in any present contracts for govt administrators and they’d not be in future.
Under Greene, one of many handful of feminine CEOs within the FTSE 100 .FTSE, Royal Mail was privatized in 2013 and has since diminished layers of administration, upgraded know-how and reduce its property invoice to save lots of prices.
The company in April named the boss of its fast-growing European parcels business, Rico Back, to succeed Greene.
Back was given a close to 17 p.c greater wage at 640,000 kilos, which was additionally criticized by the advisory companies.
An ISS spokeswoman stated they doesn’t touch upon particular person company assembly vote outcomes. Glass Lewis was not instantly obtainable for a remark.
Reporting by Arathy S Nair, Noor Zainab Hussain and Sangameswaran S in Bengaluru; Editing by Alexandra Hudson