MORE than a third of shareholders voted against executive pay at Inmarsat yesterday, after the company’s first-quarter earnings disappointed investors.
Shareholders representing 35.8 per cent of the base opposed the satellite communication firm’s remuneration report, which included £1.4m for chairman Andrew Sukawaty, the former chief executive.
The opposition was the second big revolt from shareholders in two years. At last year’s annual meeting, 40 per cent of investors had voted against executive pay proposals.
Before the AGM, shareholder advisory group Pirc had recommended voting against the remuneration report, claiming that the performance targets set for management had been too easy.
Shareholders’ anger would not have been soothed by Inmarsat’s first-quarter results, which revealed an 11.6 per cent fall in revenues. The company, which has suffered from the poor fortunes of US satellite broadband venture Lightsquared, saw shares fall by eight per cent yesterday as it warned that US budget cuts had affected trading.
The company, whose satellites are used to provide internet access to ships and remote areas, said that revenues fell to $313.7m (£202m). Without the ill-fated Lightsquared venture, sales were up 3.7 per cent.