20th Jan 2021 17:12
WH Smith PLC - Swindon, Wiltshire-based books and stationery retailer - Significant minority of shareholders vote against director remuneration report. Over 32% of shareholders vote against the resolution.
WH Smith understands that shareholders' primary concern was the salary increase of GBP25,000 which Chief Executive Carl Cowling received on July 1, 2020 which was previously disclosed to shareholders in the 2019 remuneration report.
"Our 2019 remuneration report explained that, in accordance with best practice, Cowling's salary on his appointment as group chief executive was set at a lower level than his predecessor," WH Smith says.
It adds: "The remuneration committee agreed that Cowling's salary would increase by GBP25,000 per annum, subject to performance, in each of the next three years following his appointment. The remuneration committee believed that Cowling's performance since his appointment merited the first increase in his salary with effect from July 1, 2020. Cowling chose to donate this pay increase to a charity, the Trussell Trust, until October 2020. We confirm that our executive remuneration arrangements are fully in line with our directors' remuneration policy which was approved by over 96% of shareholders at our 2019 annual general meeting."
WH Smith notes it has engaged with a number of shareholders on its executive remuneration arrangements.
As a result, it confirms Cowling's expected salary increase in April 2021 will be postponed until such time as the remuneration committee believes that it would be appropriate to implement, but it is unlikely to do so in the financial year ending August 31, 2021.
"We confirm that we will continue to actively engage with shareholders on executive remuneration to ensure their views are fully understood during 2021," WH Smith adds.
Current stock price: 1,717.00 pence
Year-to-date change: up 14%
By Paul McGowan; [email protected]
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