29th Jun 2021 10:34
(Alliance News) - RPS Group PLC said Tuesday it has spoken to shareholders regarding their concerns about director pay.
About 31% of the professional services firm's shareholder voted against the director remuneration report at its annual general meeting back in April.
"The majority of our shareholders who responded confirmed that this was in relation to the remuneration package that was agreed with the group finance director, Gary Young, upon his retirement, specifically that Gary's notice period began on the date of the AGM on April 30, rather than the date that we announced his leaving on February 19, 2020," RPS explained.
Young was replaced as finance director by Judith Cottrell, who at the time was director of Strategy.
The company continued: "As we previously commented in our response to ISS, Gary had completed over twenty years' service with the company and indicated that he would like to retire at the AGM. Following the announcement, Gary continued to operate as the group finance director until April 31, 2020."
RPS noted Young led the renegotiation of the company's banking arrangements.
"He also secured new financial covenant tests that allowed for operational flexibility, applicable to both our RCF facilities and US private placement notes. In summary, this was not a resignation but Gary taking up his retirement, after 20 years' dedicated service to the company," RPS added.
Despite this, RPS said it "understands the strength of shareholder views" over a director being paid in line with their contracted period of notice.
"We will take this fully into account when decisions are made about remuneration for future departing directors," RPS said.
Shares in RPS Group were down 0.6% in London on Tuesday morning at 107.20 pence each.
By Paul McGowan; [email protected]
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