THE SHAREHOLDER spring yesterday hit another leading firm as media group UBM announced it had narrowly avoided defeat on its executive pay deal.
More than 47 per cent of investors failed to back the directors’ remuneration report, a result that would have been considered extraordinary before a recent spate of shareholder rebellions against pay levels at underperforming firms.
Protests focused on the substantial share option given to UBM’s finance director Robert Gray and a change in rules that meant performance-related bonuses would no longer take retail price inflation into account – possibly making it easier for executives to hit targets.
A spokesman for the firm said: “The Board has a continuing commitment to a process of active engagement with Shareholders and takes careful note of the lower percentage majority in favour of the Remuneration report.”
“UBM’s executive remuneration policy is designed to reward and incentivise its senior management appropriately for an increasingly successful, growing and global company.”
Insurer Aviva, car dealer Pendragon and media group Trinity Mirror have all seen investors fail to back pay deals in recent weeks.