Home Retail Group, owner of Argos and Homebase, says it has “taken note” of investor concern about directors’ bonuses after a shareholder revolt at Wednesday’s AGM.
More than a third of shareholders – almost 36 per cent – opposed a resolution to pay directors a cash bonus of up to 150 per cent of salary. The resolution was passed.
The investor backlash followed a “red-top warning” about the scheme by the Association of British Insurers (ABI). The ABI’s members own approximately 15 per cent of FTSE 100 companies’ shares and a red-top alert represents the highest level of concern about governance.
Home Retail said: “We are pleased that the majority of those shareholders who voted, including our largest shareholders, have supported these changes.
“However, the [remuneration] committee has taken note of those shareholders who have expressed concern and will take these views into account in the ongoing monitoring of the effectiveness of the group’s incentive arrangements.”