Monday, 29 April 2013

Big vote against FTSE100 pay

Despite heavy pre-match billing, Shareholder Spring 2 hasn't really taken off yet, much to no-one's surprise. We had quite a few AGMs last week, and I couldn't really see much of note at any of them.

However, today we had a decent one - a 39% vote against a one-off share award to the chief exec at Randgold Resources, see resolution 17 here. That's sizeable in any year. So, if you were the company how would you react? A) Acknowledge the scale of the revolt and state that you take investors' concerns seriously or B) try and claim it as a win?

Judging by what they said to The Guardian, the company has opted for B)
"Considering that several of the proxy agencies advised shareholders to oppose the award the board is gratified that a large majority of shareholders recognised the merits of the award."

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