FirstGroup’ s thumbs-down

FirstGroup shareholders delivered a big – but, ultimately, symbolic – thumbs-down to the re-election of chairman David Martin at the firm’s annual general meeting (AGM) yesterday.

More than one-fifth (20.04%) of the total investor votes cast opposed him staying on the board.

Mr Martin is now the Aberdeen-based transport giant’s interim executive chairman following the exit of chief executive Matthew Gregory, who has left the company after fewer than three years at the helm.

Two other members of the boardroom team, non-executive directors Warwick Brady and Julia Steyn, also attracted a rebuke from shareholders.

Mr Brady’s re-election was opposed by 20.29% of the total votes cast, while the opposition to Ms Steyn generated a protest of 18.03%.

FirstGroup’s pay awards for bosses were rejected by more than 4% of investors’ votes.

Other AGM resolutions attracting a significant rebellion included the normally uncontentious request by the firm to be allowed to “make political donations and incur political expenditure”, with 18.58% of the votes cast rejecting this.

FirstGroup’s shares were up more than 3% to 89.3p at market close, boosted by fresh details of how the company plans to distribute £500 million to investors following the £3.3 billion sale of two of its North American divisions.

The AGM has ushered in a new chapter for the firm following the departure of Mr Gregory. He took the reins from Tim O’Toole – after a gap – in late 2018, following a spell as chief financial officer, becoming only the company’s third CEO since Sir Moir Lock head led an employee management buyout of Grampian Transport, in 1989, to found the firm.

Mr Gregory has quit the business to “move on to new opportunities”.

His decision to step down at yesterday’s AGM was announced in late June and followed pressure on him to do so from New Yorkbased hedge fund Coast Capital, which owns about 14% of FirstGroup.

Coast and other investors are unhappy over the sale of two US businesses, First Student and First Transit, believing the £3.3bn deal has left them short-changed.

Shareholders showed their displeasure at a general meeting in May, when 38.7% of investor votes opposed the sale.

REBUFFED: More than 20% of investor votes opposed David Martin’s re-election.