Prudential and Cookson hit by investor revolt
THE SHAREHOLDER spring yesterday hit insurance giant Prudential, as a third of investors failed to back its remuneration report – while a similar rebellion hit industrial materials group Cookson.
More than 30 per cent of Prudential shareholders voted against proposals to hand £29.8m in pay and benefits to seven executive directors at a tense AGM in central London.
A further three per cent of investors withheld their votes.
It was particularly embarrassing for chief executive Tidjane Thiam because the pay deal was given an “amber top warning” by the Association of British Insurers, the trade body that is expected to appoint Thiam as its new head.
“Those who voted against have stressed that they did so because of concerns about specific issues,” said chairman Harvey McGrath.
“They went on to express their full confidence in the management of the group,” he added, before saying that the firm would consult shareholders on pay in the future.
Prudential’s best-paid director last year was Michael McLintock, the head of its M&G fund management arm, who received a total package worth £7.6m. This compares to £4.7m for chief executive Thiam.
Shares in the firm closed down 1.5 per cent at 690p.
At Cookson’s AGM on the other side of the capital, 32 per cent of shareholders voted against the remuneration report, in protest a long-term incentive plan that is set to give £20m worth of shares to three executives.
Cookson responded by saying it will look at breaking the firm up to improve returns and will appoint an activist shareholder to its board.