Plumbing supplies company Ferguson today suffered a bruising pay revolt after almost a third of shareholders voted against its remuneration policy.
Just under 30 per cent of investors voted against Ferguson’s remuneration policy at the company’s annual general meeting today, while a quarter opposed its directors’ pay policy.
The backlash came after the blue chip company hiked the maximum award limit for its long-term incentive plan – a move it described as “appropriate and fair”.
Shares in Ferguson were marginally lower in afternoon trading.
“The board is disappointed that a minority voted against these resolutions, as we consulted extensively but some of those we contacted failed to engage with us, despite the efforts on our part,” Ferguson said in a statement.
“However, the remuneration committee continues to believe that the proposals are in the best interests of Ferguson and its shareholders.”
The plumbing specialist has recently carried out a boardroom reshuffle, and today confirmed that chairman Gareth Davies has been replaced by former Ashted boss Geoff Drabble.
Chief executive John Martin stepped down earlier this week and was replaced by Ferguson’s US boss Kevin Murphy.
Ferguson last month posted profit of $1.6bn (£1.3bn) in the year to the end of July, up seven per cent on the previous year and ahead of expectations.
The company has embarked on a cost-cutting strategy ahead of its planned demerger, in which it will spin off its UK business under the Wolseley brand and focus its core business on the North American market.
Main image credit: Getty