Big Yellow Group’s remuneration report and policy were overwhelmingly approved at today’s AGM despite criticism from shareholders.
The annual pay report was approved by 92.6% of shareholders and Big Yellow’s new pay policy was approved by 96.4%.
Royal London, a Big Yellow shareholder, earlier this week said it would vote against those resolutions, criticising the “large salary increases” for executives over the next three years.
Big Yellow’s policy will increase chief executive James Gibson’s base salary from £302,000 to £440,000 by 2020 – a 45.6% increase. Executive chairman Nicholas Vetch’s pay is set to rise from £275,200 to £375,00, while John Trotman, chief financial officer, will see his pay rise from £223,700 to £325,000.
See also: Big Yellow to pursue aggressive expansion
In its annual report, Big Yellow said: “Executive director base salaries will be increased over three years to more closely reflect each executive director’s role and contribution to Big Yellow and Big Yellow’s size and complexity, which has increased significantly.”
To counterbalance the incremental pay rise, Big Yellow will cut the pension provision for executives from 15% of salary to 10%.
Gibson was paid the lowest base salary of the major FTSE Main Market property chief executives in the past year. His pay did, however, benefit from substantial long-term incentive plan award, which made him the sixth highest earner among property chief executives in 2017/18 with a total pay package of £2.2m.
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