LONDON, April 13 (Reuters) - British power company Drax will engage further with shareholders on executive pay, it said on Thursday, after a third of investors opposed its remuneration report.
A total of 33.65 percent of shareholders voted against the report, which attributed Chief Financial Officer Will Gardiner annual remuneration of 971,000 pounds ($1.22 million), including a bonus of 479,000 pounds.
Shareholder adviser Institutional Shareholder Services had recommended voting against the report because it thought Gardiner’s bonus was “excessive” in view of the company’s performance the previous year.
“Discussions have already taken place with a number of institutional shareholders who did not support the remuneration report or remuneration policy resolutions,” Drax said in a statement following the vote at its annual general meeting.
“Further engagement is expected with shareholders as part of an ongoing programme,” it said.
A total of 22.97 percent of shareholders voted against Drax’s new remuneration policy, which will apply from this year.
Executive remuneration has come under growing scrutiny in Britain after a series of corporate scandals, and lawmakers have urged firms to overhaul pay policies.
However, few of the top British companies that reviewed their policies have made any changes, a Reuters analysis showed on Thursday. ($1 = 0.7983 pounds) (Reporting by Karolin Schaps; Editing by Dale Hudson)