16th Aug 2019 15:38
(Alliance News) - FTSE 250-listed food concessions firm SSP Group PLC announced Friday its preliminary response to a significant - if unsuccessful - attempt by investors to revolt against the pay policy and chair re-election at its annual general meeting.
In February, 34% of votes casts were opposed to the remuneration report of the firm with broadly the same proportion of votes cast against the re-election of Chair Vagn Sorensen. The revolt followed a similar opposition the year prior.
With regard to the opposition of the remuneration report, SSP said the "key area" of concern related to the annual bonus plan. The firm committed to "undertaking a further round of consultations with our largest shareholders and the most influential proxy advisors regarding the pay awarded in 2019, as well as gathering views on the Company's future remuneration arrangements".
SSP added that the opposition to the re-election of Sorensen - chair since 2006 - was primarily due to the length of his tenure as well as the "number of external board appointments that he held at the time".
Sorensen - a former chief executive officer of Austrian Airlines Group - serves in a number of positions across the globe, including being chair of airline Air Canada and senior Nordic advisor at Morgan Stanley.
SSP continue to believe Sorensen remains a "very effective independent chair, with extensive experience and knowledge of the business, and that his dedication and leadership have been invaluable, particularly during Simon Smith's transition into the role of CEO".
Shares in SSP were 1.3% higher at 698.00 pence in London on Friday.
Related Shares:
SSP Group