Anglo American shareholders have a mini revolt, with early reports showing that just less than half voted against remuneration report

Hayley Kirton
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(FILE) A couple of gigantic Komatsu 930,
Anglo American is the latest company to feel the anger of its shareholders over pay (Source: Getty)

Early results suggest that just less than half (41.6 per cent) of Anglo American shareholders voted down the remuneration report.

Last week, ShareSoc urged shareholders to shoot down the chief executive Mark Cutifani's £3.4m pay packet.

The miner also revealed that it would be reassessing its pay policy for 2017:

Earlier on today, investor group Hermes revealed it would not be backing the pay deal this year, in part because of concerns related to a high level of shares issued under the long-term incentive plan.

"[The shares reward] is roughly triple the number of prior years, as it is calculated by dividing the salary of each director by the prevailing share price, which was particularly low at the time of the award following a sharp fall over the year," said Bruce Duguid, director at Hermes EOS​. "In the light of the value creation experienced by long term owners in recent years, we are concerned about the resulting potential future reward to directors."

This morning, Anglo American released quarterly results for the three months ending March 2016, which revealed a 10 per cent drop in diamond production and a 27 per cent drop in iron ore production from Kumba, although iron ore production from Minas-Rio and platinum production had increased.

Many chief executives have probably felt like they are walking on eggshells during this AGM season. Last Thursday, BP shareholders voted down chief executive Bob Dudley's near $20m pay packet.

However, Centrica chief executive Iain Conn probably gave a sign or two of relief on Monday, after shareholders gave the thumbs up to his £3m reward deal.

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