UK shipbroker Braemar Shipping Services has gained more shareholder support for its executive pay report after bringing in external advisors.

A total of 83.5% of investors voted in favour of the remuneration document at the London-listed shipbroker's annual general meeting (AGM) on Tuesday.

This compares to just 66% in 2020, which prompted action by the board to identify the reasons behind the number.

The company told TradeWinds that it engaged external remuneration advisors after last year's vote.

Recommendations for best practice have been followed, Braemar added, with more detail and rationale on the pay policy provided to clearly set this out.

"Shareholders appreciated that," a spokesman said.

Happy investors

Investors have also backed the new executive team put in place by the board and new chief executive James Gundy, as well as the renewed focus on core shipbroking operations.

The spokesman also said shareholders are happy with the return of dividends for the year to 28 February.

Over the last year, the share price has risen 119% to £2.92 ($4), while the increase is 94% since Gundy took over on 1 January.

Other agenda items, including the deferred bonus plan and dividend policy, gained votes of between 96% and 99% in favour.

The exception to this was the authority to further disapply pre-emption rights, which garnered support from 85% of shareholders, up a couple of per cent from 2020.

This refers to the ability of existing shareholders to have first go at buying any new shares issued.

One source told TradeWinds last year that some investors had opposed a further dilution of shareholdings.

Trading healthy in 2021

In a trading update before the AGM, the company said it was pleased with the financial and operating performance in the first five months of 2021.

"Trading has been good across all three of the group’s divisions and the breadth of the group’s business model," the company added.

Braemar believes the diversity of its broking operation has insulated the business well from any ongoing pandemic weakness.

Rival broker Clarksons is still facing problems with shareholder votes over executive pay.

At the AGM in May, the policy received backing from 60% of the votes, down from 67% in 2020.

The company ran into trouble over legacy contracts for chief executive Andi Case and chief financial officer and chief operating officer Jeff Woyda in 2019, launching a charm offensive by directors that saw it scrape over the line that year with 51% of the vote.