Design and engineering firm WS Atkins has suffered a sizable revolt over bosses’ pay and its remuneration policy.
The company’s latest annual meeting took place on Wednesday but the voting results were announced to the stock market yesterday morning.
Nearly 9% of shareholder votes cast opposed the firm’s 2013/14 remuneration report, including a £2.17million package for chief executive Uwe Kreuger, while 10.55% objected to Atkins’ overall policy on pay.
Mr Kreuger, who became CEO in August 2011, had received a total payout worth £1.39million the year before.
His latest deal – worth 56% more – included an annual bonus of £684,500 and vested long term investment plan payment awards totalling £732,800.
As part of his overall pay package, Mr Krueger currently receives £39,000 a year for travel expenses incurred between his home overseas and Atkins’ Surrey headquarters.
Last year, more than 15% of shareholder votes were either cast against the firm’s pay awards or withheld.
In its latest annual report, the company said it had met unhappy investors to explore their concerns about its long-term growth unit bonus plan and “increased our disclosure” as a result.
Explaining its policy on remuneration, the firm said it was aimed at aligning rewards with business strategy and “calibrated to pay for performance”.
Underlying pre-tax profits for the year were up by 7.3% at £106.4million, with revenue 2.6% higher at £1.75billion.
Atkins said: “Profit after tax for the year of £96.3million…exceeded the stretch target for bonus purposes.
“Group cash performance was also strong, with the cash conversion target for the year being met in full.
“Accordingly, the “remuneration) committee has paid the maximum level of bonus to the executive directors for achieving the stretching financial targets that were set.”
Atkins employed 17,489 at the year-end, including more than 200 in Aberdeen.
In its latest interim management statement, the company said its energy business enjoyed a good start to the year.
Meanwhile, RPS Group, an infrastructure and resources consultant, yesterday reported a 3% rise in first-half pre-tax profits to £21.7million.
But RPS, which advises on the oil and gas, nuclear and transport sectors, said the strength of the pound against various currencies had limited growth during the six months to June 30.