Home Markets Aston Martin braces for shareholder rebellion against chief executives pay

Aston Martin braces for shareholder rebellion against chief executives pay

4
0

Your ads will be inserted here by

Easy Plugin for AdSense.

Please go to the plugin admin page to
Paste your ad code OR
Suppress this ad slot.

Aston Martin shareholders are gearing up to rebel against executive pay just months after the firms £4.3m initial public offering last year.

Read more: Aston Martin shares crash 18 per cent on investment bank warning

Several investors plan to reject chief executive Andy Palmers pay packet, according to Sky News. It comes after the worlds biggest proxy shareholder voting company, Institutional Shareholder Services (ISS), recommended investors oppose Aston Martins future pay policy.

The British luxury car giant will hold its first annual shareholder meeting since its unsuccessful October float at the headquarters of Freshfields law firm on Fleet Street.

A revolt would put a lid on a dismal few months for the company. Shares have fallen 41 per cent since its placing on the London Stock Exchange in October.

Your ads will be inserted here by

Easy Plugin for AdSense.

Please go to the plugin admin page to
Paste your ad code OR
Suppress this ad slot.

There is no chance Aston Martin will lose the ballot because just 32 per cent of its stock is public. Private equity firm Investindustrial and Kuwaiti sovereign fund Investment Dar hold most of the business.


In an investor report, ISS said: “The main concern with the proposed [remuneration] policy is the overall quantum of variable pay on offer for the group CEO at 500 per cent of salary.

“This is considered well above the companys current positioning and size, particularly when considering the relatively high salary level.”

Aston Martins remuneration committee chair Imelda Walsh said the firm had carried out “detailed engagement with shareholders…both in terms of the development of the remuneration policy and on the performance targets to apply to our first award under the new long-term incentive plan”.

“Our approach is consistent with the remuneration policy outline and principal terms of employment set out in our IPO prospectus.

Read more: