Groundhog Pay

In 2018, after receiving a 44% vote against its remuneration report, a chastened PLC stated: “We acknowledge this feedback and thank those shareholders who have already spoken with us and explained their reasons for not being able to support this resolution… we are committed to continuing this dialogue with our shareholders.”
This was similar to a PLC which stated in 2017, in response to a 24.8% vote against its remuneration report, that: “The Chairman and the Chair of the Remuneration Committee will seek to meet with any significant shareholders who voted against the report to further identify any other issues that arose.”
That in turn was similar to a statement from a PLC in 2016, in response to a 42% vote against remuneration report: “The Board is very aware of shareholder observations and these will play a key part in the Board’s thinking as remuneration is considered for the business going forward…”
Which reminds us of a statement from a PLC in 2015, in response to a 30% vote against its remuneration report: “The Board notes the vote in respect of the Directors Remuneration Report. [The company] has spoken with several shareholders about the termination arrangements for [the executive] where his contract required that any settlement had to be determined in line with UK damages principles.” The companies were: Ladbrokes owner GVC, Ladbrokes, Ladbrokes and Ladbrokes. Tomorrow GVC has its AGM, and in the run-in it has stressed its engagement with shareholders and willingness to listen to their concerns about executive pay.
On an entirely different subject, in 1971, The Who sang: “I’ll get on my knees and pray we don’t get fooled again.”

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