Lloyds Banking Group (LON:LLOY) has suffered its first shareholder revolt since it was returned to full private ownership last year, with more than a fifth of voters refusing to back the group’s remuneration report at the company’s annual general meeting (AGM) which was held yesterday. The move came after advisory body Institutional Shareholders Services (ISS) urged investors to vote down the report, highlighting discrepancies between ‘pay and relative performance’.
Lloyds’ share price has been little changed in London this morning, and as of 08:44 BST stood at 66.00p, flat in percentage terms, and marginally underperforming the broader market, with the benchmark FTSE 100 index currently standing 0.42 percent higher at 7,749.20 points. The group’s shares have lost just under 10 percent of their value over the past year, as compared with about a three-percent rise in the Footsie.
Lloyds suffers shareholder revolt
Lloyds disclosed in its AGM statement yesterday that 20.78 percent of the voters had rejected the group’s annual remuneration report. The revolt came after ISS said that it had “calculated that the CEO’s pay is 95.0 times that of the average employee in the organisation”. Antonio Horta-Osorio took home a total pay package of £6.4 million for last year, up 11 percent from £5.8 million in 2016.
The Times reported in its coverage of the news that although the remuneration report vote was passed, Lord Blackwell, the chairman, had said that he was disappointed with the result, and promised to consult further with those who had not backed the arrangements.
The lender also noted in the AGM statement that going forward, it would “engage further with all shareholders and proxy advisors to discuss the Group's approach to remuneration”.