Shipbroker Clarkson is gearing up for a showdown with shareholders after dishing out £11.9m to its chief executive last year.
The FTSE 250 firm handed Andi Case the bumper pay packet – up from £10.1m the year before – after a record financial performance.
The businessman’s basic salary was £550,000 but he received a bonus of £10.4m plus pensions and benefits.
Investors will vote on the shipbroker’s remuneration policy at its annual general meeting (AGM) on 9 May amid ongoing rows in the City over executives pay packets.
Proponents of higher pay are concerned City bosses are being poached by rival US companies, which are offering significantly better remuneration deals.
Proxy advisor Glass Lewis has recommended shareholders oppose Clarkson’s remuneration report, arguing its uncapped bonus scheme results in unnecessarily high pay, The Sunday Times reported.
Dr Tim Miller, chair of the remuneration committee, acknowledged in Clarkson’s 2023 annual report executive that pay arrangements “do not accord with the norm for FTSE 250 companies.”
The policy was renewed at its AGM last year with just over 56 per cent shareholder support. “While this level of support is less than we would ideally like, the majority of our shareholders continue to support us securing the retention and incentivisation of executives who have consistently delivered exceptional returns for shareholders since 2006,” Miller wrote.
He told Tradewinds in an interview: “Clarkson is reaping the rewards of almost two decades of sustained and strategic investment led by the executive management team, building a market-leading business across all segments,” adding that Case was a “significant revenue generator for the firm.”
Clarkson was approached for comment.
This year’s AGM comes ahead of a number of key votes in the City on payouts given to executives.
On Thursday, shareholders in the London Stock Exchange Group, which owns the London stock exchange, will vote on plans to boost chief executive David Schwimmer’s pay to a possible £13.2m.
Glass Lewis has urged investors to oppose the proposals, despite the former Goldman banker overseeing a period of bumper growth.