Blackfriar: Pay decision that flew in face of shareholder opposition

But last week Sheffield-based insulation giant SIG did just that. Chris Davies will see his salary bumped up by almost 15 per cent this year, from 465,000 to 532,875.

Almost 220m shares, representing 66.7 per cent of the votes at the group's annual shareholder meeting, were lodged against the group's remuneration report,

Another 32m votes were withheld, suggesting a significant proportion of shareholders who did not want to rock the boat, but were unwilling to back the increase.

The report had been "red topped" by the Association of British Insurers, pointing to serious concerns. It was a revolt on an overwhelming scale. Only five UK plcs' pay reports were voted down last year. The same shareholders who supported the group's deeply discounted 325m cash call last year, but have been told there's no cash for a dividend, were galled by the pay increase.

SIG claimed the rise was deferred from a year ago at Mr Davies' own request. It said the remuneration committee "unanimously" backed the pay rise, and will move Mr Davies' salary closer to the market norm.

"I am extremely concerned about this result and take it very seriously," insisted chairman Les Tench, adding he will consult shareholders further.

But he stuck to his guns. "I and the remuneration committee strongly believe that the new salary is not excessive."

But like the majority of SIG's shareholders, Blackfriar believes SIG should have backed down.

Like most companies exposed to the stagnant European construction market, SIG has had a tough recession.

It was forced to cut 1,774 jobs and close 72 branches during 2009 in order to save 65m. Restructuring charges and other one-off items meant it posted bottom-line losses of 55.3m in 2009. Votes on remuneration may only be advisory, but it makes a mockery of shareholders when a result as overwhelming as SIG's is trampled on by the board.

n There are some pivotal moments when you can tell the economy has turned the corner and for Yorkshire it could well be the news that work on the high profile 650m Trinity Leeds scheme could start as early as this summer.

The scheme was in a sad state this time last year.

Last April the site was mothballed after confidence among retailers had slumped to an all-time low. The shock collapse of Woolworths, MFI and dozens of other chains shook the retail sector to its core. But now we have a turning point.

Land Securities has signed up nearly half the tenants for Trinity Leeds and is confident of securing enough to hit its target to start work on the site in the next few months.

Gerald Jennings, Land Securities' retail portfolio director for the North, has said work could start as early as this summer.

This is a scheme that will transform the heart of Leeds and catapult it onto the main stage. It has been a torturous 12 months for the scheme's developers but the news revealed to the Yorkshire Post yesterday that fashion chains River Island and Oasis and restaurant chains Yo! Sushi and Carluccio's are to join high profile names Marks & Spencer, Boots, Next, Top Shop, BHS, H&M and Everyman Cinema at the scheme is an achievement to celebrate.

Alongside White Rose in south Leeds, the Trinity Leeds scheme has every chance of catapulting Leeds into one of the top four UK shopping destinations overtaking Manchester and making it a credible alternative to the top three destinations London, Glasgow and Birmingham.