SIG plc shareholders have shown their displeasure over the one-off £375,000 bonus awarded to the new chief executive who has been in post since February. The rebellion came at the AGM which confirmed that the £150 million cash call and new shareholder investment, that is integral to its survival strategy, had been successful.
At yesterday’s AGM 44% of shareholders voted against the award of the one–off payment to Steve Francis, who was appointed interim chief executive in February and then permanent CEO in May. The Board accepted that the award was outside the terms of the Directors’ Remuneration Policy and acknowledged that a significant number of votes were cast opposing the resolution.
As a result the Board intends to consult with shareholders on amendments to the Directors’ Remuneration Policy, including with respect to long term incentive plan arrangements, over the coming months and will include consultation on resolution 5 with relevant shareholders as part of this process. The Board said it would provide details of the consultation process and any actions taken or proposed to be taken within six months.
SIG plc crashed to a £112.7 million pre tax loss in 2019 and that to strengthen its financial position it made a £150 million cash call on shareholders. SIG also agreed that Clayton, Dubilier & Rice, a leading USA private equity investor, would invest £85 million for a 25% stake in the firm.