Business

Drax traders insurgent on bosses’ pay

Drax

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A 3rd of traders in Drax have voted towards its remuneration report after its finance chief was awarded a bonus of virtually £500,000.

Shareholder adviser Institutional Shareholder Providers had really useful voting towards the report.

It mentioned that Will Gardiner’s bonus was “extreme” given the ability firm’s efficiency the earlier 12 months.

Underlying profits fell from £46m to £21m for 2016 and the dividend was slashed from 5.7p to 2.5p a share.

Chief govt Dorothy Thompson was awarded a dividend of simply over £750,000, bringing her whole pay for 2016 to almost £1.6m – a rise of greater than £300,000.

Mr Gardiner, who joined in late 2015 from semiconductor maker CSR, was paid a complete of £971,000.

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Drax

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Drax finance chief Will Gardiner was awarded a £479,000 bonus

Drax mentioned it might maintain additional talks with shareholders within the wake of the protest vote.

“Discussions have already taken place with a lot of institutional shareholders who didn’t assist the remuneration report or remuneration coverage resolutions,” the corporate mentioned following the vote at its annual assembly.

Virtually 1 / 4 of shareholders voted towards Drax’s new remuneration coverage, which is able to apply from this 12 months.

The corporate’s energy station close to Selby in north Yorkshire generates 7% of the UK’s electrical energy.

Earlier this 12 months, one of many Metropolis’s prime fund managers warned that executive pay was “too high” and that traders have been able to take stand with corporations that awarded hefty rises to bosses.

David Cumming, head of equities at Customary Life, mentioned his agency “couldn’t justify” pay going any increased.

“We proceed to see too many proposals that may carry a considerable improve [in pay], and we now have to sign that we aren’t pleased with that,” he informed the BBC.

In the meantime, Blackrock, the enormous American funding fund, has informed the chairmen of the UK’s greatest firms they have to stop making big payments when executives go away, and in lieu of pensions.

It might solely approve pay will increase for administrators if staff’ wages additionally rose.

BlackRock is a significant shareholder in nearly each firm listed on the FTSE 100 and FTSE 250.