Amec board’s pay too much
THE furore over City pay hit another company last night, as over half of investors at engineering group Amec refused to back the company’s remuneration report.
Around 40 per cent of its shareholders opposed the report on directors salaries and bonus plans, while 13 per cent abstained.
Amec wanted to give its chief executive Samir Brikho a further 14 per cent pay rise, after a 41 per cent pay increase to £675,000 last year.
He’s set to receive £750,000 this year.
Before the shareholder meeting, The Association of British Insurers (ABI) had issued an “amber top” alert on Amec, and said that Brikho’s raise could be cause for concern.
The ABI does not tell shareholders which way to cast their vote.
The shareholder rejection is the latest in a series of assaults on companies who seek to reward their executives with potentially excessive bonuses, not reflective of company performance.
Sub-prime lender Provident Financial’s remuneration report was rejected by over half of investors earlier this month.
Meanwhile, around a third of mining group Xstrata’s shareholders rejected the companies pay report.