Kier investors stage a revolt over bumper pay for bosses

KIER was given a bloody nose as investors staged a major revolt over executive pay.

Almost 54pc of shareholders voted against the salaries the troubled construction group handed to top staff during the last financial year at the company’s annual general meeting.

Kier has seen its market value tumble from around £1bn to less than £200m in a year, as it struggled under a crippling debt pile, botched a fundraising last December and saw thenchief executive Haydn Mursell quit in January.

The contractor paid its board a total of £2.1m in the year to June, when the firm reported losses of £245m. This was down from £5.5m the year before, because Kier did not pay any bonuses in 2018-19.

Investor advisory groups ISS and Glass Lewis had both urged shareholders to vote against approving executives’ pay.

Shareholders’ eyebrows were also raised when it emerged the firm had footed the bill for former boss Mursell’s broadband subscription for a further five months after he left the firm. When he worked at Kier, the broadband had been classed as a work expense.

Before the annual meeting yesterday, Kier said Vertiero had left the company and his responsibilities had been doled out among other executives.

The 53.9pc vote against its pay scheme is an advisory vote, meaning Kier does not have to act on it. However, the firm said in a statement it will ‘reflect carefully’ on points raised by investors and will ‘ engage further’ with them.

Kier will be added to a list of ‘named and shamed’ list of firms who have seen significant shareholder rebellions.

In June, 40pc of shareholders in Ladbrokes- owner GVC pushed back over chief executive Kenny Alexander’s £19m pay packet, while Standard Life Aberdeen and Micro Focus also raised investors’ ire.

Kier shares rose 1.7pc, or 1.5p, to 89.15p.