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AGM alert: pay vote at new FTSE 100 company

There's a new name in the blue-chip index, and shareholders will get the chance to have their say soon. Graeme Evans explains how investors can vote there and at two other interesting companies. 

11th October 2024 08:02

by Graeme Evans from interactive investor

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barratt house build 600

The first AGM since the merger of Barratt Development and Redrow to form Barratt Redrow (LSE:BTRW) has been boosted by the competition watchdog’s all clear for the integration of the housebuilders.

The Competition and Markets Authority's (CMA) approval means Barratt shareholders will be able to vote on the board election of former Redrow chief executive Matthew Pratt and incoming non-executive directors Nicky Dulieu and Geeta Nanda, rather than having to wait until next year’s AGM.

The combination of the brands Barratt Homes, David Wilson Homes and Redrow follows a challenging year for the FTSE 100 housebuilder and its shareholders after profits fell 56.5% and the total dividend was cut by 51.9% to 16.2p a share.

Barratt Redrow

When: 12 noon, Wednesday 23 October.

Where: Linklaters LLP, One Silk Street, London EC2Y 8HQ.

How to participate: A live webcast is available but the facility does not include the right to speak or vote on the business of the AGM. Questions can be submitted during the webcast or in advance through agmquestions@barrattplc.co.uk by Wednesday 16 October. The deadline for proxy voting instructions is 12 noon, Monday 21 October. More AGM details can be found here.

Who’s in the chair? Caroline Silver, who has held senior corporate finance and M&A positions at Morgan Stanley and Merrill Lynch, is hosting her second Barratt AGM.

How did Barratt Developments do in the year to 30 June? Completions of 14,004 were at the upper end of the expected range, but still 18.6% down on 2023’s level due to a smaller order book at the start of the year and a lower number of average outlets. Revenues fell by 21.7% to £4.17 billion and adjusted pre-tax profits by 56.5% to £385 million. Earnings per share dropped 57.9% to 28.3p, resulting in a final dividend of 11.8p a share. This will be paid on 1 November and results in a 51.9% drop in the total for the year to 16.2p. Barratt completed the acquisition of Redrow in August and last week received the go-ahead from the Competition and Markets Authority to begin the integration process.

Who are the new Barratt Redrow directors? Redrow chief executive Matthew Pratt has joined the Barratt board, along with non-executive directors Nicky Dulieu and Geeta Nanda. Resolutions for their election to the board are on the agenda at this year’s AGM.

How have shares performed? Up 14% to 472.2p (453.4p on Thursday).

How much is the boss paid? The annual salary of David Thomas increased in July by 3% to £861,000. Due to the timing of the Barratt Redrow combination, the remuneration committee has delayed conducting a benchmarking exercise until it is able to do so for the enlarged group. His total remuneration for 2023/24 amounted to £2.3 million, up from £1.7 million the year before and including cash and deferred shares worth £1.1 million based on the 89.9% of annual bonus opportunity. The 15% vesting of long-term incentives contributed £194,000.

How was variable pay determined? Just over half the annual bonus award related to an above-target profit figure of £385 million, with the rest reflecting achievements on the metrics of capital employed, quality and service, construction waste reduction and diversity and inclusion. The long-term incentive award was judged on four performance conditions, with no vesting for the three-year record of earnings per share, return on capital employed and total shareholder return. The only vesting was for the reduction of emissions.

How will remuneration change due to the Redrow combination? Potential adjustments to in-flight performance conditions and targets will be considered by the remuneration committee during the current financial year. The remuneration of Redrow chief executive Matthew Pratt remains the same except that he is eligible to participate in the Barratt long-term incentive plan at a level of up to 200% of salary instead of up to 150% at Redrow. 

How did last year’s AGM go? The annual remuneration report was approved with 97.68% of votes in favour, while the new three-year remuneration policy got 97.64% support.

How’s the company doing on diversity? The board has a woman in a senior position and at least one director from a minority ethnic background. Female representation on the board fell to 33% in October, although this will improve to 41.7% after the Redrow  combination.

Ashmore

When: 12 noon, Wednesday 6 November.

Where: De Vere Grand Connaught Rooms, 61-65 Great Queen St, London WC2B 5DA.

How to participate: The deadline for the return of proxy voting instructions is 12 noon, Monday 4 November. More details about Ashmore Group (LSE:ASHM)'s AGM can be found at the bottom of this page.

Who’s in the chair? Clive Adamson is standing for re-election despite nearing the end of the Corporate Code’s recommended nine-year board tenure. Given that he served more than six years as a non-executive director prior to becoming chair and in order to facilitate succession planning, the board has agreed that his appointment should be extended by up to another three years. His 40 years in financial services included executive positions in banking and regulation.

How did the company do in the year to 30 June? Assets under management (AuM) fell 12% to $49.3 billion (£36.9 billion), driven by net outflows of $8.5 billion and partially offset by positive investment performance of $2.1 billion. About 60% of AuM is outperforming over three and five years, which includes the challenging conditions of late 2021 and early 2022. Net revenues of £189.3 million were 4% lower, while adjusted earnings fell 27% to £77.9 million. Growth in finance income meant pre-tax profits of £128.1 million were 15% higher and diluted earnings per shares rose 12% to 13.6p a share. A dividend of 12.1p a share is due to be paid on 6 December, resulting in an unchanged total for the year of 16.9p a share.

How have shares performed? Down 18% to 170.1p (197.5p on Thursday).

How much is the boss paid? Mark Coombs, who founded the business that became Ashmore in 1992, continues to receive a basic salary of £100,000. His total remuneration amounted to £2.1 million after he was awarded a bonus of cash and deferred shares worth £1.875 million. The 19% vesting of long-term incentive granted in 2019 contributed £100,524.

How did last year’s AGM go? The annual remuneration report got 93.08% support, while the new three-year remuneration policy was approved with 87.83% of votes in favour. Key changes included the replacement of the company’s matching share plan with a separate bonus and long-term incentive plan. At least 70% of the annual bonus is subject to deferral into Ashmore shares vesting in five years, significantly above market practice. The base salary cap for executive directors increased to £150,000, having been at £120,000 since 2015.

How’s the company doing on diversity? The gender split of the board is 50% female, including the senior independent director. It has an ethnic minority board member and a target for 40% of the senior management team to be from an ethnic minority background by 2027.

Renishaw

When: 10am, Wednesday 27 November.

Where: New Mills, Wotton-under-Edge, Gloucestershire, GL12 8JR.

How to participate: Questions to Renishaw2024AGM@Renishaw.com before 5pm, Monday 11 November will be answered online by 12 noon, Friday 22 November. Proxy voting instructions should be returned no later than Monday 25 November. More details about Renishaw (LSE:RSW)'s AGM can be found here.

Who’s in the chair? David McMurtry stepped down as executive chairman on 1 July, although the 36.2% shareholder who co-founded the business 50 years ago continues as a non-executive director in order to provide expertise on product innovation. David Grant, who has been senior independent director since October 2013, is due to host the AGM in his role as interim chair.

How did the company do in the year to 30 June? The precision engineering firm reported record revenues of £691.3 million, with a strong fourth quarter leading to 0.4% annual growth at actual exchange rates and underlying growth of 3.7% at constant currency. Adjusted pre-tax profit of £122.6 million was 13% lower, primarily due to currency movements and staff pay. Earnings per share of 133.2p compared with 159.7p last year. A final dividend of 59.4p a share is due to be paid on 5 December, resulting in an unchanged total for the year of 76.2p. 

How have shares performed? Down 5% to 3,700p (3,600p on Thursday). 

How much is the boss paid? Chief executive Will Lee’s base salary rose 5% in January to £738,680, below the average increase for the wider workforce at 6.7%. The annual incentive scheme for 2023/24 did not pay out as the threshold target for adjusted pre-tax profit of £140 million was not met. David McMurtry got £788,000 during his final year as executive chair.

What’s changing in 2024/25? Lee’s maximum bonus opportunity has increased from 150% of salary to 200%, with any additional award in deferred shares. The company does not operate a long-term incentive plan and views arrangements for executive directors as “modest compared with businesses of similar size and complexity”. The increase, which is within the 225% limit of Renishaw’s pay policy, comes amid Lee’s increased responsibilities since the departure of the executive chair. Remuneration committee chair Catherine Glickman said: “We are fortunate to have Will leading the business. He brings strong direction, deep Renishaw and industry experience coupled with technical expertise.” 

How did last year’s AGM go? The annual remuneration report was approved with 97.05% of votes in favour, while the new three-year remuneration policy got 95.50% support. The re-election of David McMurtry and John Deer saw dissent of 31.26% and 28.48% respectively. Following consultation with shareholders, the company said: “The main matters of concern continue to be the absence of a relationship agreement between the founders and the company, succession planning and board diversity.”

How’s the company doing on diversity? Renishaw does not meet UK Listing Rules as the proportion of women on the board stood at 33% at the end of June. There are also no women in any of the four senior roles and it does not have a director from a minority ethnic background. In addition, it recognises that diversity among its senior leadership does not meet today’s expectations of a FTSE 250 company. To help change that, it has set a target to have women represent 40% of senior management by December 2027. And, in line with the Parker Review recommendations, it has also set a target to have people from ethnic minorities represent 10% of its UK-based senior management by the same date.

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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