Investor revolt over Pendragon pay

SHAREHOLDERS in Pendragon have voted firmly against the company’s executive pay and bonuses, while a significant minority tried to oust the car dealer’s chief executive.

Almost two thirds of shareholders – 65.5pc – voted against the company’s remuneration report, which outlined the pay packets and bonuses executives received for 2021.

It was the only resolution that was rejected at the group’s annual general meeting (AGM) yesterday but those with key roles in the car dealer also faced the wrath of shareholders.

Some 35pc voted against the re-election of Bill Berman, the chief executive, though he retained his role.

Mr Berman was paid £3.4m in pay and bonuses for the year.

Dietmar Exler, Pendragon’s senior independent director, faced a similar situation to the chief executive, with 39.8pc voting against his re-election.

The pandemic and Russian invasion of Ukraine have created problems for Pendragon, with delays caused by global shortages of microchips used in car electronics and supply chain disruption.

Anders Hedin, owner of Swedish car retailer Hedin Group, a major shareholder with a 27pc stake, said Mr Berman’s pay package was “unwarranted” in an interview with The Sunday Times.

After the AGM, Pendragon acknowledged the feelings of investors and said it would consult with shareholders to develop a new pay policy. It added that it was planning a incentive plan based on a three-year performance period.