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Punch Taverns shareholders reject remuneration report

Some 55.44% of the votes cast on the resolution to approve the remuneration report at the AGM of Punch Taverns voted against the remuneration report, condemning the report to defeat. The company joins a select list of five companies in the FTSE All-Share to have lost this vote in 2009.

Shareholders were upset at the size of share awards and bonuses made to the directors despite the company posting a loss of some £400m last year. The company faces a struggle to survive as it has accrued debts of £3.5bn. Awards to the executive directors under the long-term incentive plan ranged from 329,624 to 631,578 shares – up to the maximum level permitted under the scheme. Further, the Managing Director of the pub business is entitled to 7.5% of the amount of value growth above a hurdle of 6% compound growth per annum over three years from the date of grant. Awards under his special plan are settled in cash, with 60% being paid after August 2011, with the remainder to be paid after August 2012.

Full details of the voting results are available on Manifest VoteWatch.

Defeated Remuneration Report Votes

2003 2004 2005 2006 2007 2008 2009
FTSE 100 1 0 0 0 0 0 2
FTSE 250 0 2 3 1 0 0 3
SmallCap 1 1 1 0 2 1 0

What do you think?