Clarksons’ top two executives have once again waived part of their bonus as overall pay rose after a record 2022.
The London-listed shipbroking giant’s annual report reveals chief executive Andi Case and finance and operating chief Jeff Woyda’s basic pay remained unchanged once more at £550,000 ($687,000) and £350,000, respectively.
But Case’s overall package jumped to £10.11m from £6.65m in 2021. This includes a bonus of £8.4m.
Woyda took home £3.27m, up from £2.04m in 2021, with £2.2m of the 2022 figure being a bonus.
The duo are handing back 8.5% of their bonuses, which will go back into a pot to be divided among employees. This is the same percentage as in 2021, but the amount will be larger.
The cash waived by both over the last five years is £5.5m.
Clarksons posted its best-ever results in 2022, with a pre-tax profit of £101m. Dividends have grown for 20 years straight.
Since Case became chief executive in 2008, the share price has risen from £3.20 to £30 today.
Tim Miller, chairman of the remuneration committee, said in a statement to TradeWinds: “Our management team has delivered another record year.
“This has been driven by strategic decisions taken over many years to invest in people, technology [and] data, and ensure broad product and sector coverage and a global offer.”
In line with brokerages
He called Case not only the leader of the business, but a significant revenue generator engaged in industry-changing transactions.
“Our executive pay arrangements are in line with those of other leading executives in our market,” Miller said.
Last May, Clarksons survived another substantial shareholder rebellion to push through its controversial pay policy again.
The remuneration report gained 62.77% of the votes at its London annual general meeting, up from 60% in 2021.
The issue has been a recurring thorn in the group’s side for several years due to legacy contracts for Case and Woyda.
In 2019, a charm offensive by directors saw the brokerage scrape over the line with 51% of the vote.
In the report, Miller said: “Whilst we recognise that our executive pay arrangements do not accord with the norm for FTSE 250 companies, they are proven to work in the context of our business.”
“The shareholders who have been on a long journey with us understand the market in which we operate and the success of the directors’ remuneration policy. We hope that our performance and the success of the business again justifies their continued support.”
Miller and chairman Laurence Hollingworth have been speaking to shareholders ahead of a May vote on the policy.
They will continue to engage in the weeks ahead.
Case has not had a basic pay rise since 2010 and Woyda since 2015.
A new policy introduced in 2020 kept the legacy terms in place for the top two, but new hires face more traditional corporate deals.
