Inmarsat slammed by Royal London as shareholders revolt over sky-high exec pay packets
Exec pay at UK satellite firm Inmarsat has been slammed for being “too closely geared towards short-term awards” as shareholders today revolted and voted down multi-million awards to the firm’s top brass.
Some 58.49 per cent voted against Inmarsat’s remuneration report at its annual general meeting (AGM).
Chief executive Rupert Pearce took over £1.9m in 2017 with finance chief Tony Bates paid £1.5m. The pair’s remuneration fell from £2.3m and £1.8m respectively in 2016.
Today’s revolt follows Inmarsat’s 2017 AGM, which saw 48.9 per cent of shareholders voted against the firm’s annual report on remuneration.
Ashley Hamilton Claxton, head of responsible investment at one of Britain’s biggest fund manager’s, Royal London Asset Management, said Inmarsat’s board “did not go far enough to address the dissent expressed by their shareholders in 2017, something which the results of today’s vote have demonstrated”.
The firm’s pay is far too closely geared towards short-term awards, and so we voted against the firm’s remuneration report, alongside the majority of Inmarsat shareholders.
Chairman Andrew Sukawaty said: “Inmarsat recognises that shareholders have raised some new concerns on resolution 2 [remuneration report] and we will consult will them further ahead of the 2019 AGM.
“We note the votes received against resolution 18 [political donations] and appreciate the comments provided by shareholders on this resolution as part of the AGM engagement process. We will take these into account as we review our future position on this matter.”
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“Consulted widely”
Some 11.13 per cent voted against the reappointment of non-exec Simon Bax – the chair of the remuneration committee. And Sukawaty also attracted investor ire, with almost nine per cent voting against him continuing as the board’s chair.
Meanwhile, more than a third of shareholder (34 per cent) voted against the firm’s authority to make political donations.
Alongside the publication of its 2018 AGM results the FTSE 250 firm insisted it had “consulted widely across its shareholder base to understand the concerns being raised” following its 2017 AGM.
“We listened carefully and implemented a plan that addressed the key issues that our shareholders identified,” the firm said.
In light of the 2018 AGM vote, Inmarsat recognises that shareholders have now raised some new additional concerns. The remuneration committee will review the resulting feedback and will seek shareholder views as it considers the structure of a new remuneration policy. Inmarsat will then consult with shareholders on its updated remuneration policy ahead of it being put forward for shareholder approval at the 2019 AGM.
Despite rising almost nine per cent today, Inmarsat shares are worth almost a third of their January 2016 value and shares have fallen by more than a half over the last year.
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