Savills has vowed to engage with shareholders over its remuneration policy, after a fifth of votes at today’s annual general meeting were cast against the agency’s 2020 directors’ remuneration report.
The vote was the most sizeable dissent at the AGM, with almost 21% of votes cast against the report. There were also votes of between 4% and 7% cast against the re-election of several directors, including chief executive Mark Ridley.
Savills acknowledged the remuneration report vote and said that its board had engaged with shareholders and proxy advisers over concerns ahead of the meeting.
“The board understands that shareholders’ primary concern was its decision to take into account a wider number of operational and strategic performance metrics than the profit targets set prior to the pandemic,” the agency said in a statement following the meeting.
“The board applied discretion to specifically award 21% of the maximum potential profit-related bonus element to the executive directors to recognise the significant operational and strategic progress in the year, reflected by the impressive market share gains.”
The agency said that move meant that total remuneration for its executive directors was down by 45% year-on-year.
“In light of the voting outcome, and in any event as part of the planned introduction of the new chair of the remuneration committee to our leading shareholders, [the board] will engage with our leading shareholders over the coming months,” the firm added.
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