Drax shareholders are rebelling over executive pay and a new remuneration policy

 
Courtney Goldsmith
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A third of investors protested too-high pay (Source: Getty)

Shareholders rebelled against Drax's executive pay today at the company's annual general meeting.

The power company, which owns the UK's biggest power plant, said it will continue to engage with shareholders on remuneration after a third of investors opposed its report.

Shareholder advisory group Institutional Shareholder Services (ISS) recommended investors vote against the report, which assigned Will Gardiner, chief financial officer, annual pay of £971,000 - including a £479,000 bonus.

ISS said Gardiner's bonus was "excessive" in terms of how the company performed the previous year.

In February, the group's full-year earnings fell by 17 per cent and it halved its dividend.

Read more: Drax share price dives earnings and dividends power down

A total of 33.65 per cent of shareholders voted against the report while 22.97 per cent of shareholders voted against Drax's new remuneration policy, which will take effect from this year.

In a statement, Drax said the board noted the "significant" number of votes against the remuneration report and policy resolutions and said it will hold talks with shareholders. The group said:

Discussions have already taken place with a number of institutional shareholders who did not support the remuneration report or remuneration policy resolutions.

The feedback received will be discussed by the remuneration committee in forthcoming meetings and further engagement is expected with shareholders as part of an ongoing programme.

Read more: Revealed: The highest and lowest chief exec pay ratios on the FTSE 350

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