AAM faces revolt over 'excessive' board pay

PIRC, a body which advises institutional shareholders, had recommended voters reject AAM's remuneration report as the firm had no maximum limit on awards and that incentives for directors were "excessive".

Tom Powdrill, head of communications for PIRC, said: "It's the largest vote against a remuneration report at any company we have covered so far this year, and a vote like this in a typical season would be in the worst 5 per cent for the whole year. So it's a result the company needs to take seriously."

The firm's founder and chief executive Martin Gilbert last year received a 3.3 million bonus on top of his 450,000 salary. This was a significant rise from a total package of 1.9m the previous year. Andrew Laing, deputy chief executive, also saw his remuneration more than double, from 472,000 to 1m.

A spokesman for AAM said: "The vote on the report was carried by a very substantial majority of shareholders, who recognise that the group needs to retain its world class talent by running an effective remuneration policy. We will continue a dialogue with our shareholders on this important issue."

AAM said its portfolio grew by 2.6 per cent in the final quarter of last year to stand at 183.3bn, although net new business for the quarter fell by 800m.

Donald Waters retired as a director and will be replaced as senior non-executive director by Anita Frew.