Imperial Brands today said that it would cut its new boss’ bonus by 10 per cent a year after a shareholder revolt.
Earlier this month around 40 per cent of shareholders voted against Stefan Bomhard’s pay at an annual general meeting.
Now the company has said that Bomhard has agreed with the tobacco giant’s remuneration committee to cut his long term incentive plan from from 350 per cent of salary to 315 per cent.
Imperial said that the cut was “a reduction of 10 per cent of the face value of the usual annual award”.
After the AGM, the Times reported that shareholders were unhappy that his remuneration pay was considerably larger than his longstanding predecessor Alison Cooper.
But the firm said today that the investors’ main concerns were over Bomhard’s salary.
Bomhard joined the FTSE 100 firm last February on a salary of £1.3m, as well as a pension allowance equivalent to a maximum of 14 per cent of salary.
The Times reported that he also received a £483,015 cash payment as compensation for bonus payments he was due from Inchcape, the FTSE 250 car dealer he left to join Imperial.