Tuesday, 11 June 2013

Afren defeated, again

Afren saw its remuneration report voted down today. It was a stonking vote against, almost 80%, and is the first remuneration report defeated this year (not the first defeat on pay this year though). It comes after a bit of commentary on the lack of a Shareholder Spring 2.

However it's also the second time that Afren has lost the vote on its remuneration report, having also been defeated in 2011. I think that this is the first company to lose the vote on its remuneration report twice since the requirement to have a vote came in at the end of 2002.

But actually Afren's history of pay revolts goes further back. As I blogged back then, in 2010 although its remuneration report passed on a straight for/against split, if you include abstentions then the vote in favour dropped to 40%.

Luckily though, two defeats and a near miss in the past four years have clearly made the company sit up and take notice. As they say today "Our remuneration philosophy reflects the need to retain the most able people in a highly competitive talent market and we will provide appropriate rewards for exceptional achievement leading to the long-term increase in Company value."


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