SuperGroup suffers investor protest
The owner of the Superdry clothing label has come under fire over director bonus deals as 17% of investors failed to back its pay plans.SuperGroup investors showed their anger at recent "golden hellos" handed out to new directors, with more than 11.5 million votes made either against the pay report or withheld at the firm's annual shareholder meeting in Cheltenham.
A fifth of investors also failed to back the re-election of founder and chief executive Julian Dunkerton amid criticism over share bonuses earmarked for new chief operating officer Susanne Given and recently appointed chief financial officer Shaun Wills.
But despite the shareholder protest, SuperGroup's pay plans and director re-elections were passed as they received the majority of votes needed.
Concerns had been raised by shareholder groups ahead of SuperGroup's annual general meeting. Shareholder body Pirc recommended investors voted against the pay proposals, while the Association of British Insurers (ABI) was said to have put an "amber alert" on SuperGroup's remuneration report - its second most severe warning.
Ms Given - who was hired in April from John Lewis, where she was director of fashion and beauty - has been given a package including a £350,000 base salary, as well as a guaranteed share award of 300% of salary, or £1.1 million, as a so-called golden hello.
Around 17% of votes cast were made against her election in a sign of discontent over the pay deal. Mr Wills, who was appointed chief financial officer in April, is paid £250,000 in annual salary and will also receive a guaranteed share award worth a potential £500,000 in shares.
Pirc warned the practice was "not in the company or investors' long-term interests as it contributes to a general tendency to grant such replacement awards, which in turn devalues the retentive effect of share schemes".
While the share awards are based on performance targets, Pirc said some of the financial goals set for the long-term incentive schemes were "not considered sufficiently challenging".
SuperGroup said in its annual report that it was aware the awards were "unusual" but that they were "necessary to facilitate both recruitments".
Ms Given - who was hired in April from John Lewis, where she was director of fashion and beauty - has been given a package including a £350,000 base salary, as well as a guaranteed share award of 300% of salary, or £1.1 million, as a so-called golden hello.
Around 17% of votes cast were made against her election in a sign of discontent over the pay deal. Mr Wills, who was appointed chief financial officer in April, is paid £250,000 in annual salary and will also receive a guaranteed share award worth a potential £500,000 in shares.
Pirc warned the practice was "not in the company or investors' long-term interests as it contributes to a general tendency to grant such replacement awards, which in turn devalues the retentive effect of share schemes".
While the share awards are based on performance targets, Pirc said some of the financial goals set for the long-term incentive schemes were "not considered sufficiently challenging".
SuperGroup said in its annual report that it was aware the awards were "unusual" but that they were "necessary to facilitate both recruitments".
© 2013 Press Association