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Ladbrokes management Fight off Shareholder Revolt
Friday May 6,2016 : SHAREHOLDER REVOLT AT LADBROKES
Investors protest executive pay...but lose.
Ladbrokes management successfully fought off a shareholder revolt over executive pay packages in London on Thursday, according to widespread reports in the UK business media.
Investors used the annual general meeting in London to give a practical but unsuccessful demonstration of their displeasure, casting 42 percent of votes against acceptance of the directors' remuneration report.
That document showed that Ladbrokes’ chief executive Jim Mullen received a total pay package worth GBP 567,000 for April 1 to the end of December – the period covering his first eight months as CEO following his promotion from the top management of the Digital division of the company .
His predecessor, Richard Glynn left in March 2015 but under his contract still received GBP 183,000 in 2015 remuneration, along with payments for loss of office, including GBP 580,000 and GBP 131,000 for 12 months’ salary and pension contributions respectively; GBP 34,000 covering a car allowance and private medical insurance for 12 months and GBP 100,000 for “failure to grant a performance share award in March 2015″.
Glynn benefitted handsomely from a clause in his 2010 contract which provided “for a 12-month notice period and was structured that any termination payments had to be determined in line with UK damages principles”.
Investors were advised prior to the agm by investor watchdog Pensions and Investment Research Consultants (PIRC) to reject the remuneration report. This is the second time that Ladbrokes management has faced shareholder discontent over a remuneration report - at last year's annual meeting 30 percent of shareholders voted against the report...and lost.
Ladbrokes fell to a pre-tax loss of GBP 43.2 million for the year to December 31 2015, from a profit of GBP 37.7 million in 2014, as a result of higher taxes and one-off costs.
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