Shareholders rebel at Homeserve over ex-director payouts
Shareholders dealt home repairs company Homeserve a bloody nose today as 30 per cent voted against the directors’ pay report.
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Advisory firm Institutional Shareholder Services (ISS) had recommended Homeserve shareholders vote against the remuneration report – which lays out directors’ pay – in protest at payouts to ex-directors Martin Bennett and Johnathan Ford.
It became the latest firm to face a shareholder rebellion over executive pay. Stock owners have voiced their concerns at B&Q owner Kingfisher, Standard Chartered, and online retailer Boohoo in recent weeks.
Directors at Vodafone and JD Sports have agreed to be paid less to head off investor revolts.
Former chief executive Bennett left the board of Homeserve in August 2018, while former chief operating officer Ford left in December.
In its June annual report Homeserve said Bennett would continue to be paid his salary, pension and benefits “until the end of his employment”, while Ford would receive his until July 2019. Both will get over £40,000 in redundancy payouts.
Homeserve today acknowledged that their departures were announced in advance of their respective exit dates, but said the termination payments were in line with company policy.
The company said it took on board the feedback from shareholders and said it will actively consider it when the remuneration policy is prepared for the 2020 annual general meeting.
Its share price rose today after it said trading was in line with expectations in an update. Homeserve said it expected strong growth in the full year.
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Shares rose 1.4 per cent to £1.151 by 2pm UK time.