Almost a quarter of Hargreaves Lansdown shareholders have refused to back pay deals for directors at the firm.
The revolt came after shareholder activist group Pirc called for investors to vote against the deals, citing concern “surrounding the operation of long-term plans which have no performance conditions or maximum awards limits”.
“During the year, the chief executive Ian Gorham was awarded options worth 12.7 per cent his base salary. Average CEO pay is at the top of the sector,” Pirc added.
Founders Peter Hargreaves and Stephen Lansdown currently hold 52 per cent of the firm, which floated in 2007, meaning that aside from their holding over half of shareholders voted against the move. The move was passed.
Pirc also said that directors’ contracts were on a 12-month rolling basis but said there was “no explanation of the company’s liabilities on termination payments”.