Some 55.44% of the votes cast on the resolution to approve the remuneration report at the AGM of Punch Taverns voted against the remuneration report, condemning the report to defeat. The company joins a select list of five companies in the FTSE All-Share to have lost this vote in 2009.
Shareholders were upset at the size of share awards and bonuses made to the directors despite the company posting a loss of some £400m last year. The company faces a struggle to survive as it has accrued debts of £3.5bn. Awards to the executive directors under the long-term incentive plan ranged from 329,624 to 631,578 shares – up to the maximum level permitted under the scheme. Further, the Managing Director of the pub business is entitled to 7.5% of the amount of value growth above a hurdle of 6% compound growth per annum over three years from the date of grant. Awards under his special plan are settled in cash, with 60% being paid after August 2011, with the remainder to be paid after August 2012.
Full details of the voting results are available on Manifest VoteWatch.
Defeated Remuneration Report Votes
| 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | |
|---|---|---|---|---|---|---|---|
| FTSE 100 | 1 | 0 | 0 | 0 | 0 | 0 | 2 |
| FTSE 250 | 0 | 2 | 3 | 1 | 0 | 0 | 3 |
| SmallCap | 1 | 1 | 1 | 0 | 2 | 1 | 0 |