Kier shareholders reject executives’ pay package
Kier shareholders have voted to reject senior bosses’ remuneration package at the company’s annual general meeting (AGM).
In one of the resolutions set for a vote at the AGM today, shareholders were asked to support the package, detailed in its 2019 Annual Report.
But instead 54% revolted against the package, compared to 46% voting in favour.
The annual report shows how Kier’s board directors received a total of £2.1m in salary and bonuses in 2018/19 in a year when the business posted pre-tax losses of £245m. However, the figure was well down on the £5.5m the board collectively received in 2017/18.
The report also sets out the remuneration package for key senior staff in 2020. The chief executive Andrew Davies will receive a base salary of £595,000, pension contributions equivalent to 7.5% of salary, a performance-related bonus capped at a maximum of 125% of salary, and a long-term incentive plan (LTIP) of up to 200% salary, dependent on the group’s performance over a three-year period ending 30 June 2022.
Meanwhile, the chief financial officer will receive a base salary of £475,000, along with the same pension and bonus conditions and an LTIP of up to 175% of salary under the terms set out in the annual report.
The report also showed that Haydn Mursell, who left the role of chief executive in January this year, received £423,000 in 2019.
In response to the vote, Kier said: “The board notes that 53.88% of the votes cast were against Resolution 2 (which related to the Directors' Remuneration Report).
“Prior to the AGM, the company contacted certain of its largest shareholders and will continue to reflect carefully on the points that they have raised. The Remuneration Committee will engage further with the company's shareholders and the proxy advisers to understand their views and to decide how to address them. In addition, the Remuneration Committee will consult with shareholders when reviewing the company's remuneration policy, which shareholders will be asked to approve at the 2020 AGM.
“The company will publish an update within the next six months on the views it has received from shareholders and the actions it has taken, or proposes to take, in response.”
Kier had no further comment to make when contacted by CM.