TRG: Nearly half of shareholders vote against chief’s hefty pay as tension with investors grows
Shareholders dealt a major blow to The Restaurant Group (TRG) chief Andy Hornby today after large numbers voted against bosses latest pay packets.
Hornby was stung by shareholders in the Wagamama’s owner after 46 per cent voted against the company’s pay report for last year at the firm’s annual general meeting in London.
Hornsby received a total pay package worth £792,000 for 2022, including an annual bonus of £125,000.
A TRG spokesperson said: “Whilst we are pleased that all resolutions passed, we acknowledge the significant vote against certain proposals, particularly in relation to our remuneration report, and we will continue to consult with shareholders to find an appropriate solution.”
The vote comes as a number of TRG investors have been publicly calling for an overhaul of the company, including calls for a change of governance and plans sell off its star brand Wagamama.
Activist investor Oasis was first to slam TRG earlier this year, warning that they would vote down Hornby’s “disproportionate” pay packet in the upcoming AGM.
Oasis also previously called for an “immediate” change of governance saying the business had “one of the worst performing share prices of any UK leisure company”.
However, the London-listed business, which also owns Frankie & Benny’s, recently reported a jump in sales – up nine per cent in the first leg of the year.
Nonetheless, it appears shareholders remain unimpressed with the firm’s plans, with a report in The Telegraph revealing that new minor investor TMR Capital has presented TRG’s senior bosses with a proposal to sell off Wagamama restaurant brand.
Derek Vago, strategic advisor at TMR Capital, told the outlet: “We want [TRG] to acknowledge that the future is not as a PLC. It has to start with that… [and] that everything is non-core other than Wagamama.”
Columbia Threadneedle Investments, the firm’s largest shareholder with a 19 per cent stake, however, remained optimistic about the firm’s future.
“As a long-term shareholder in The Restaurant Group (TRG), we remain supportive of TRG’s Board and management team, who have successfully navigated the exceptionally tough industry backdrop,” the firm said in an emailed statement.