Capco shareholders revolt against director pay

Capital & Counties has said its remuneration committee will “engage with shareholders” on their concerns after a majority voted against the company’s remuneration report for 2019 at its annual general meeting today. At the meeting, which was closed to shareholders due to the coronavirus lockdown, almost 68% of shareholders voting on Capco’s directors’ remuneration report for 2019 voted against it, although a majority voted in favour of the company’s remuneration policy. Ahead of the AGM, Sky News reported that the Covent Garden owner was expecting to face “fury” from investors over bonus levels, and said that proxy adviser Institutional Shareholder Services had recommended that investors vote against the report, claiming directors had “exercised significant upward discretion when determining performance outcomes, revising the original sales price targets for the Earls Court portfolio and setting other financial targets during the year”. Announcing the AGM results in a stock exchange update, Capco acknowledged the “significant” vote against the report. “Given 2019 was a year of transition, positioning Capco as a strongly capitalised prime central London-focused REIT, the board is disappointed but understands these results,” the company said. “The remuneration committee will continue to engage with shareholders to ensure views are fully understood. The company will publish an update on shareholder engagement within six months of the annual general meeting.” Capco’s shares closed down 4.7% at 158.5p. Photo: Ingrid Abery/Shutterstock