Saga is to discuss its directors’ pay with shareholders after more than a fifth voted against their remuneration at today’s annual general meeting.
Although the Directors’ Remuneration Report was passed at the meeting, 22.28% – 17.7m – voted against.
Where 20% or more vote against a board recommendation, the UK Corporate Governance Code states that a company should explain what actions it intends to take to consult shareholders in order to understand the reasons behind the result.
Chair of the Remuneration Committee Eva Eisenschimmel said:”I am pleased that a significant majority of shareholders have voted in favour of the Annual Report on Remuneration. However, the Committee has noted that approximately 22.28% of shareholders voted against the Report.
“We discussed our approach to remuneration with shareholders in June 2020 at the height of the COVID-19 pandemic and recently approached major shareholders (in May 2021) to explain (and provide context to) the remuneration decisions explained in our Annual Report and Accounts for the year ended 31 January 2021.
“We will now consult with those shareholders who voted against the annual report on remuneration to establish the reasons for their vote.”
She said Saga will issue an announcement on the feedback and action the committee intends to take within the next six months. A full explanation will be set out in the Remuneration Rerport for 2021/22.