UK shipbroker Clarksons’ problem with its pay policy is not going away any time soon.
Shareholders rebelled in increased numbers this year at the London-listed company’s annual general meeting, with votes on the policy and the remuneration report garnering support among only 56% of investors.
This is down from nearly 63% last May, but not as close as 2019, when Clarksons squeaked home with only 51%.
It has been a recurring issue for several years due to legacy contracts for chief executive Andi Case and finance and operations chief Jeff Woyda.
Chairman Laurence Hollingworth and remuneration committee chair Tim Miller had again been in talks with certain shareholders over the issue in the run-up to Thursday’s meeting.
The issue appears to have affected their own personal re-election votes, with Miller winning just 66% support and Hollingworth 81%.
Most other agenda items received near-unanimous backing, including the reappointment of Case and Woyda.
Clarksons said after the vote that it had noted the results, adding: “We appreciate the support from most of our shareholders and will continue our engagement over the year ahead.”
Miller said: “The management team has delivered record profit before tax of £101m [$126m] and increased the dividend for the 20th consecutive year.
“Andi Case both leads the business and is a significant revenue generator for the firm. Our executive pay arrangements are in line with those of other leading executives in our market.”
The broker has been contacted for further comment.
A policy introduced in 2020 kept the legacy terms in place for the top two executives, but new hires face more traditional corporate deals.
Big fee earner
Case is rewarded not only as a CEO but as one of the biggest fee-earning brokers in the game. Woyda also performs multiple roles.
The pair again waived part of their bonuses as overall pay rose after a record 2022. They are handing back 8.5% of their bonuses, which will go into a pot to be divided among employees. This is the same percentage as in 2021, but the amount will be larger.
Case and Woyda’s basic pay remained unchanged once more at £550,000 and £350,000, respectively.
But the CEO’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.
