Interactive Investor

Shareholders not happy with Frasers and Barratt Developments

21st October 2022 10:27

Graeme Evans from interactive investor

Plenty of investors voted against the annual pay report at these two well-known companies. And shareholders will soon get their say on a £1million bonus at this FTSE 250 firm.

Pay arrangements at Frasers Group (LSE:FRAS) and the lack of women on the board of Barratt Developments (LSE:BDEV) have been highlighted by shareholders in AGM votes this week.

Frasers, whose new boss Michael Murray has the potential to land £100 million from an incentive scheme, saw 12% of votes go against its remuneration report. Most of the company’s shares are held by founder Mike Ashley, who stepped down from the board this week.

Barratt’s chairman John Allan saw more than 20% of votes go against his re-election as he was held responsible for female board representation falling below the requirements of the Hampton-Alexander review.

Hays

When: 12 noon, Wednesday 9 November.

Where: UBS, 5 Broadgate, London, EC2M 2QS.

How to participate: Proxy voting forms need to be returned no later than 12 noon, Monday 7 November. More AGM details can be found here.

Who’s in the chair? Former Compass and First Choice director Andrew Martin has been in the role since 2018.

How did the company do in the year to 30 June? Net fees rose 32% to £1.2 billion, with strong client and candidate confidence leading to trading records in 24 countries. Operating profit more than doubled to £120.1 million and basic earnings per share lifted 151% to 9.22p. Strong cash generation supported £168 million in 2022 dividends and a £75 million share buyback programme, with the proposed final dividend of 1.90p and special dividend award of 7.34p both due to be paid on 11 November.

How have shares performed? Down 30% to 111.6p (107.4p on Thursday).

How much is the boss paid? Alistair Cox received a 5% increase effective from July, taking his salary to £822,274. Total remuneration for the 2021/22 financial year came to £2.5 million. This included an annual bonus of just over £1 million in cash and shares based on 88.6% of the maximum opportunity, plus the vesting of long-term performance shares worth £509,000.

How did last year’s AGM go? The annual remuneration report was approved with 98.37% of votes in favour.

What’s the view of voting agencies? Glass Lewis recommends support for the annual remuneration report.

How’s the company doing on diversity? The board currently includes 37% female directors and one director from an ethnic minority background. By 2025, Hays (LSE:HAS) has committed to reach a level of 45% female leaders, up from 42% in 2021, and to reach 50% by 2030.

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.