The Press and Journal (Inverness, Highlands, and Islands)
Transport giant is hit by shareholder revolts
FirstGroup suffered a series of shareholder revolts at its annual general meeting (AGM) in London yesterday.
The Aberdeen-based transport giant was holding an AGM away from its home city for the first time in its history.
FirstGroup’s latest remuneration report, including an £876,000 pay package for new chief executive Matthew Gregory and a deal worth £170,000 for two months’ work by former CEO Tim O’Toole, was rejected by nearly 24% of the shareholder votes cast.
There was a near-40% shareholder revolt over the re-election to the board of remuneration committee chairwoman and independent nonexecutive director Imelda Walsh.
The re-election of another independent non-executive director, Jim Winestock, was opposed by more than 37%.
And a vote paving the way for the company to “make political donations and incur political expenditure” attracted a near-23% revolt.
Other resolutions attracting opposition of more than 10% included the re-election of Steve Gunning, Martha Poulter and David Robbie as directors. Mr Gregory’s re-election to the board was opposed by 6.13% of the shareholder votes cast.
It comes just weeks after the company survived an attempted coup by USbased rebel shareholder Coast Capital. Investors rejected all of the proposals put forward by Coast at last month’s extraordinary general meeting in London.
Chairman Wolfhart Hauser, who was among the directors Coast was seeking to oust in a bruising battle for control over the group’s future direction, stepped down at yesterday’s AGM.
Mr Robbie, senior independent director, has been installed as interim chairman.
Announcing the AGM result FirstGroup said: “The board notes that more than 20% of shareholders voted against four of the resolutions put to today’s meeting.”
It added: “The board takes seriously its responsibility to understand shareholders’ opinions and will continue to discuss investors’ views on these and other matters as part of our ongoing programme of engagement.”
A trading update from the company said: “A formal and rigorous process to select a new chairman in accordance with UK Corporate Governance Code principles is well under way, overseen by David Robbie.
“The group has consulted with major shareholders to hear their views and suggestions, and looks forward to updating the market of a satisfactory outcome at the earliest opportunity.”