Third of Premier investors revolt over pay

The Leeds-based company said 32.1 per cent of its shareholders voted against the report at its annual general meeting with 67.9 per cent voting in favour.

A number of UK companies have been hit by investor revolts at shareholder meetings this year.

Andrew Moss, the chief executive of insurer Aviva, stepped down after shareholders voted against his remuneration plans.

Yesterday’s vote follows a 1.3 per cent fall in annual profits at Premier Farnell, whose chief executive Harriet Green is to move to debt-laden tour operator Thomas Cook in July.

According to Premier Farnell’s latest annual report, Ms Green earns a base annual salary of £562,000, a six per cent rise on the previous year.

Chief operating officer Laurence Bain, who is to take over as chief executive when Ms Green leaves, received a 16.5 per cent pay increase to £400,000 and finance director Nicholas Cadbury, who joined last year, received a base salary of £400,000.

No bonuses were paid as the threshold level of operating profit under the plan was not met.

The report said that any adjustment to these salaries will be decided in June to take effect from July 1.

“The committee is aware, from its consultations with shareholders, of the desire for restraint,” the company said

Ahead of the meeting, shareholder activists PIRC advised investors to vote in favour of the report.

In its recommendation it said: “Disclosure is adequate. Executive contracts are considered best practice. Long-term incentive awards were not excessive during the year under review and targets set by the Nomination Committee appear to be challenging in nature.”

Premier Farnell has said it is cautious about the economic outlook for 2012, but it expects a return to growth this year. The company, which issued a profits warning in July after sales were hit by the global economic slowdown, said adjusted pre-tax profits fell 1.3 per cent to £88.5m in the year to January 29.

Premier Farnell sells products such as batteries, computer parts and security products to engineers in over 100 countries.