Inchcape's board members faced a mini revolt at the company's AGM earlier today, as more than a third of voting shareholders refused to give their blessing to executive pay.
At today's meeting, investors in the London-headquartered luxury car dealership voted 63.5 per cent in favour of the director's remuneration report, although all of the 17 other resolutions were passed with relative ease.
"The board notes that, although the resolution to approve the directors' report on remuneration was passed with the requisite majority, some 36.5 per cent of votes were cast against the resolution," the company said in a statement. "We have engaged with the company's major shareholders in order to fully understand their concerns relating to the directors' report on remuneration and will continue to engage with shareholders throughout the year."
According to the company's annual report, Stefan Bomhard, who joined the business as chief executive during the course of the financial year, earned £2.9m for his efforts.
Shares in the company, which has been listed on the London Stock Exchange since 1958, closed down 3.1 per cent at 691p.
Executive pay has been giving shareholders something to talk about this AGM season. Also today, shareholders approved Legal & General chief executive Nigel Wilson's pay, although, thanks to an incorrectly disclosed set of share options in the financial services company's annual report, they didn't have true sight of the single figure total for his pay until yesterday.
Inchcape's executive team can at least comfort themselves in the knowledge that it could have been a lot worse. So far this year, shareholders have refused to give their approval to pay awards at BP and Paysafe.