HRG shareholders revolt over executive pay
03 July 2009 09:28
Home Retail Group, which includes Argos and Homebase, has been forced to defend a new bonus incentive scheme after over a third of investors voted against the plan.
Although the protest vote was not enough to block the move, it has been seen as indicative of widespread unrest in the company's shareholders, according to press reports. The new remuneration scheme could see executives awarded up to 150% of their salary as a bonus for performance.
HRG's remuneration committee is chaired by Andy Hornby, the former chief executive of HBOS, which is now part of Lloyds Banking Group.
In a statement, the group said: "We are pleased that the majority of those shareholders who voted, including our largest shareholders, have supported these changes. However, the committee has taken note of the comments made by those shareholders who have expressed concern and will take these views into account in the ongoing monitoring of the effectiveness of the group's incentive arrangements".
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