21st May 2019 17:44
LONDON (Alliance News) - Provident Financial PLC at its annual general meeting on Thursday saw a shareholder rebellion against the publication of the annual report on remuneration.
At the meeting, around 20% of shareholders voted against resolution three, to approve the annual statement by the chair of the remuneration committee and the annual report on remuneration.
However, despite the discontent, all resolutions at the meeting were passed.
"We acknowledge the concerns that some of our shareholders have expressed in the vote. We carried out a consultation process with large shareholders during 2018 and early 2019 on the proposed changes to our directors' remuneration policy. During 2019, we will continue to consult and engage with our shareholders on the implementation of the policy, and to understand the reasons behind the voting decisions," Provident Financial said in a statement.
Shares in the sub-prime lender closed 1.25 at 485.60 pence on Tuesday.
Provident is currently entangled in a hostile takeover from smaller rival Non-Standard Finance PLC.
On Wednesday last week, Non-Standard Finance announced its GB1.3 billion offer for fellow sub-prime lender Provident had become unconditional - after lowering its acceptance condition to 50% from 90%. As of Wednesday, 53% of Provident shares had taken up the offer.
Although a majority of Provident shareholders have accepted the offer, these Provident shareholders also collectively make up the majority of Non-Standard Finance shareholders, holding shares in both companies.
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