One of Britain’s biggest industrial companies has abandoned plans for a multimillion-pound equity gain for its top executives following investor backlash.
Sky News has learned that Smiths Group has consulted its top shareholders over a one-off bonus that City sources said on Tuesday would have been worth “a substantial sum” to the company’s top executives.
Smiths, which last year agreed to sell its medical equipment division for more than £2bn, is one of the relatively few industrial conglomerates in the FTSE 100 index.
It makes products such as airport detection scanners and parts for satellites, and was a supplier of components for the Mars rover.
Last year, Paul Keel replaced Andy Reynolds Smith as the group’s chief executive amid investor frustration at the performance over a period of years.
Further details of the additional paychecks proposed by the board were unclear, although a person close to Smiths said it would be inaccurate to describe them as being worth tens of millions of pounds.
An investor asked about the plans described them as “ridiculous” and said Smith’s management was already well paid.
According to the company’s 2021 annual report, Mr. Reynolds Smith received a total of $2.75 million in the last fiscal year.
The news that the proposed one-off share awards have been abandoned following feedback from shareholders comes amid another troubled annual meeting season with protests over board pay at a number of blue-chip companies.
Smith declined to comment.
Smiths scraps unexpected executive stock gains after investor backlash | business news
Source link Smiths scraps unexpected executive stock gains after investor backlash | business news