Over a third of shareholders at PageGroup’s AGM last week voted against the proposed directors’ remuneration policy. Nevertheless, the remuneration policy was passed as it received the requisite majority vote. 

The new plan provides annual awards of up to 375% of base salary for each executive director, however, the company described the change to the remuneration policy as “a simplification of the previous schemes and replaces the current annual bonus and the LTIP with one plan.  The maximum potential payout of the scheme is the same as previously”.

According to Staffing Industry Analysts’ Staffing Executive Compensation Analysis, PageGroup CEO, Steve Ingham, was the 16^th most highly paid staffing executive globally and 2^ndmost highly paid in Europe based on 2015 compensation.

In a statement, the company said, “The Board notes that whilst Resolution 3 (approval of the Directors' Remuneration Policy) and Resolution 19 (approval of the Rules of the Executive Single Incentive Plan ("ESIP")) were passed with the requisite majority, there were a significant number of votes cast against both resolutions. PageGroup engaged extensively with its major shareholders, as well as ISS and The Investment Association, to understand their views on the proposed Remuneration Policy and the ESIP. As part of that consultation process we took account of our shareholders' feedback and made modifications to the proposed ESIP, which forms the central part of the new Remuneration Policy.

We thank those shareholders who voted in favour of the resolutions and those who have already explained their reasons for not supporting the resolutions. The Board feels strongly that the Remuneration Policy is an important part of its strategy and will help drive performance at PageGroup through clear, simple and transparent executive remuneration, linked to strategic, financial and non-financial targets. It was disappointed with the level of the vote, especially following the constructive and generally supportive consultation process. The Company acknowledges this outcome and will continue its dialogue with shareholders.”