BT Group (LON:BT.A) has suffered a shareholder revolt at its annual general meeting (AGM), with a little over a third of voters rejecting the telco’s remuneration report. The AGM comes ahead of the group’s first-quarter results on July 27.
BT’s share price has slipped marginally lower in London in today’s session, having given up 0.24 percent to 226.80p as of 13:55 BST. The stock is outperforming the benchmark FTSE 100 index which has fallen deep into the red and currently stands 1.22 percent lower at 7,598.20 points.
BT suffers shareholder revolt at AGM
BT announced in a statement today that 34.16 percent of voters at the group’s AGM had rejected the company’s annual remuneration report.
“We are naturally disappointed with the lower level of support received for our Remuneration Report,” the former telecoms monopoly said in the statement.
The Financial Times noted in its coverage of the news that shareholder advisory group Institutional Shareholder Services had recommended rejecting the remuneration report due to concerns over the size of the chief executive’s bonus which could pay out 130 percent of his basic salary.
The group’s outgoing chief executive Gavin Patterson landed £2.3 million for the telco’s last financial year, up from £1.35 million for the prior-year period. The rise was mostly on account of an annual bonus of £1.29 million. BT’s annual report further revealed that his bonus would have been larger had he not volunteered to have it capped.
BT noted in today’s statement that for the remainder of the year, it will engage further with “shareholders and proxy advisers to understand in full detail the reasons for their concerns and whether we should consider any changes to our longer term approach to remuneration”.
Deutsche Bank expects ‘uneventful’ Q1 update
In other BT news, Proactive Investors reported today that Deutsche Bank expects the telco’s upcoming first-quarter update to be ‘uneventful’. The analysts explained that new, lower guidance announced in May probably de-risked the Q1 results print somewhat, as will the group’s new KPI reporting which is designed to draw attention away from subscriber volume based metrics and towards value generated per customer.