Shareholders getting taste for board blood as Pendragon U-turns on bonuses

THE “shareholder spring” stepped up a gear yesterday as an investor rebellion forced car dealer Pendragon to backtrack on plans to award bumper bonuses to its directors, while almost half of Trinity Mirror’s shareholders voted against the publisher’s pay report.

Pendragon had proposed raising performance-related bonuses to 150 per cent of base salary, up from 100 per cent last year, but 67 per cent of shareholders voted down the proposal at its annual meeting.

Chairman Mike Davies said the company would not implement the remuneration report and will launch a full consultation with shareholders.

The rebellion also saw 26 per cent of investors vote against the re-election of Davies, with 14 per cent opposed to the re-election of chief executive Trevor Finn.

At Trinity Mirror’s annual meeting, 45.9 per cent of shareholders opposed the group’s remuneration report.

Chief executive Sly Bailey announced last week that she was stepping down amid growing shareholder anger over her pay package.

Trinity, which publishes the Daily Record and Sunday Mail, had tried to ward off a revolt by cutting Bailey’s short-term bonus. Bailey is expected to leave at the end of the year.

Earlier this week, Aviva chief executive Andrew Moss resigned after 54 per cent of the insurer’s investors refused to back its remuneration report.