Balfour Beatty receives a slap on the wrist from shareholders over its pay policy at its AGM

Courtney Goldsmith
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A significant portion of Balfour's shareholders voted against the new pay policy (Source: Getty)

Balfour Beatty got a slap on the wrist today as more than 20 per cent of voting shareholders rejected its remuneration policy at its annual general meeting (AGM).

The construction company's remuneration committee proposed bumping its boss's annual bonus from 120 per cent of his salary to 150 per cent, taking his pay to £3.76m, a 13 per cent increase on the previous year.

Advisory group Institutional Shareholder Services (ISS) recommended investors vote against the company's pay policy, saying the level of increase for chief executive Leo Quinn was "inappropriate".

At the AGM, 22.82 per cent of voting shareholders rejected the policy.

Read more: Balfour Beatty sells streetlights business to Equitix for £33m

The remuneration committee noted the votes against its pay policy and said it actively engages with its shareholders, but it believes that the policy changes are "necessary, appropriate and in their best interests".

The committee said: "Phase one of the Build to Last transformation programme has created a solid foundation for Balfour Beatty's future profitable growth, but there remains much to be done to achieve the group's full potential value and the new policy aligns with that goal.

"The committee will ensure that implementation of the policy, from target-setting to incentive awards, focuses on that objective and will continue to listen carefully to shareholders' views and consult on any material changes."

In March, Balfour Beatty reported a profit for the first time in two years for 2016.

Meanwhile, over 11 per cent of investors in Prudential refused to back the pensions firm's remuneration report at its annual general meeting.

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