8th Oct 2013 16:06
LONDON (Alliance News) - City of London Investment Group PLC Tuesday said its shareholders rejected its remuneration report, which included payments to its former chief executive and former finance director who both stepped down just three months into running the company.
However, the vote was only advisory so the payment to the former directors will be made regardless, the company said.
The remuneration report proposed that former Chief Executive Officer Doug Allison should be paid GBP1.1 million for loss of office, while its also proposed that ex-Finance director Valerie Tannahill be paid GBP200,000 for the same.
In fact, 1.8 million votes were cast in favour of the resolution, compared to nearly 5 million being cast against it. There were 725,250 abstaining votes.
The pair left their roles at the company on April 15 after being appointed in January. They had been at the investment group for around 15 years.
In its interim management statement published on Monday the group said: "The board is aware of understandable concerns by shareholders with regard to the firm's remuneration policy."
At the time, the investment group said that all of its directors, including Allison and Tannahill, were of the view that the changes were in the group's best interests.
Allison had previously served as finance director since 1998, while Tannahill had been a part of the group since 1997.
City of London Investment Group shares were Tuesday quoted at 266.94 pence, up 0.94 pence, or 0.4%.
By Samuel Agini; [email protected]; @samuelagini
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