23rd Jun 2016 16:12
LONDON (Alliance News) - AIM-listed IQE PLC on Thursday said shareholders rejected its remuneration report, with only 31% of votes going in its favour, and that there will be a review of remuneration for its executives.
In a statement, which followed the semiconductor wafer products and services supplier said David Grant, who was knighted earlier this month, its senior independent director, has been appointed as chairman of its remuneration committee.
"One of Sir David's initial tasks in his new role is to assess executive remuneration, taking further external independent advice as necessary, to ensure it is aligned with shareholders' objectives and in accordance with good market practice," IQE said in a statement.
IQE's annual report for 2015 showed that total directors' remuneration rose to GBP1.6 million that year from GBP1.3 million a year earlier. Andrew Nelson, president and chief executive officer, saw his total emoluments rise to GBP553,000 from GBP421,000.
The annual report said that IQE's shares lost value over the course of 2015, falling to 17.50 pence from 17.75p. The company's pretax profit rose to GBP19.4 million in 2015 from GBP5.2 million in 2014. Earnings were hit in 2014 by GBP10.9 million of so-called adjustments, largely due to restructuring and reorganisation costs and non-cash accounting charges.
Grant has been asked to form and chair a Nominations Committee to undertake the process of recruiting new independent non-executive directors, according to IQE, which said he intends to consult with stakeholders in the business and to take external professional advice.
In addition, IQE said that Godfrey Ainsworth, non-executive chairman, and Simon Gibson, non-executive director and previous chairman of the remuneration committee, have informed the board they do not wish to seek re-election when their current periods of appointment end.
Ainsworth and Gibson have each served more than nine years on the board, IQE said. The company's 2015 annual report showed that Ainsworth's service fees remained at GBP125,000 that year. The entire amount was paid in cash. In 2014, GBP95,000 was paid in cash, with the remainder in IQE shares. Gibson's service fees rose to GBP50,000 from GBP46,250, and were paid in cash, as was the case a year earlier.
The company was unavailable to comment.
Shares in IQE closed up 2.7% at 18.49p on Thursday,
By Samuel Agini; [email protected]; @samuelagini
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