Chime has suffered a shareholder revolt fuelled by its largest investor, Sir
Chime, which owns businesses including
Almost 22% of shareholders chose to withhold voting to approve the company's remuneration policy for directors – often seen as a protest vote – while just over 3% actively voted against it.
Three-quarters of shareholders approved the resolution.
Similarly investors representing just over 21% of the vote failed to endorse the remuneration report, the level of pay awarded to Chime's top executives last year, with just under 80% approving the resolution.
It is understood that Sorrell's
The source said
Nevertheless investor advisory firm Pirc put out a note telling shareholders to oppose Chime's remuneration policy.
"The principle concerns relate to potential for excessive variable pay, the lack of explicit performance target disclsoure for the performance share plan, a relatively weak clawback policy … and potentially generous severance terms," it said.
This includes a bonus of £174,825, awarded in shares deferred for three years, and £308,247 from long term incentive plans – 34% of the maximum that could have vested.
This is well down on the £393,570 bonus paid out in 2012, and the £737,363 he received that year from long-term incentives vesting.
At last year's annual meeting Chime pushed through bonuses and a controversial performance share scheme, despite more than 50% of shareholders failing to vote them through.
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