Shareholder revolt over SIG boss Steve Francis' £375,000 bonus narrowly fails

Shareholders in Sheffield-based building materials firm SIG have narrowly approved a £375,000 bonus for chief executive Steve Francis.
SIGSIG
SIG

Mr Francis joined the firm in February of this year on an interim basis and, following an improvement in SIG's performance was handed the role permanently two months later.

The firm said the bonus, which we equates to 65 per cent of his salary, was to reward the work he had done in improving SIG's performance.

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However shareholders had expressed concern and an Emergency General Meeting was called, at which just short of 56 per cent voted in favour of the payment.

In an update to the Stock Exchange the firm said: "The Board welcomes the majority support for the one-off payment of £375,000 to the CEO of the Company outside the terms of the Directors' Remuneration Policy but acknowledges that a significant number of votes were cast opposing the resolution."

It added that the board would now consult with shareholders on amendments to the Directors' Remuneration Policy, including with respect to long term incentive plan arrangements, over the coming months.

"The Board expects to provide an update on the Company's website on this consultation process and any actions taken or proposed to be taken within six months of today's date in accordance with the UK Corporate Governance Code 2018," it said.

The move comes at a time when the paypackets of senior leaders at listed firms are under scrutiny. In 2018 Persimmon CEO Jeff Fairburn left the York firm after his £75m pay came under scrutiny.

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