Imperial Brands is cutting CEO Stefan Bomhard’s performance-linked pay in response to shareholders’ concerns over his remuneration package, reports Reuters.
Bomhard and the remuneration committee have agreed that the value of his 2021 long-term incentive plan award will be cut to 315 percent from 350 percent of his salary.
Around 40 percent of shareholders voted against the directors’ remuneration proposal during Imperial Brand’s annual general meeting earlier this month.
The shareholder revolt over Bomhard’s salary came as it was “significantly larger” than his long-running female predecessor, reported The Times.
When Imperial Brands announced Bomhard’s appointment in February last year, it said he would receive an annual salary of about £1.3 million ($1.82 million) and a pension allowance equivalent to a maximum of 14 percent of salary and other usual benefits.
Since joining, the former Inchcape executive has promised to boost the company’s performance by bringing in new talent, changing incentive structures and sharpening focus on top markets.
In 2017, Imperial Brands shareholders balked a proposal to increase the salary of then-CEO Alison Cooper to almost £8.5 million annually from £5.5 million.