Shareholders in urban regeneration company Morgan Sindall Group (MSG) have delivered a hefty revolt to its pay awards for top bosses.
The firm, whose past projects include the £107 million Marischal Square development in Aberdeen, suffered a substantial rebellion over pay (resolution two) at today’s annual general meeting.
Nearly one-third (32.64%) of shareholder votes were cast against the company’s remuneration policy.
CEO’s pay package rockets
It gave chief executive John Morgan a total pay package worth £2.76 million last year – up from just over £1m in 2020.
His latest remuneration was boosted by an annual bonus worth £683,000 and long-tern incentive plan (LTIP) awards worth a total of £1.45m.
Finance director Steve Crummett saw his total package mushroom to £2.21m, from £878,000 previously.
Inverness office
The group, whose construction arm has an office in Inverness, said its latest pay awards were boosted by a one-off adjustment to correct for an “exceptional, unforeseen event” – namely the Covid pandemic – impacting LTIP calculations based on earnings per share.
It added: “While resolution two has passed and will be implemented, the remuneration committee appreciates that some shareholders have not supported this decision or may be wary about setting a precedent in this area.
“The board is committed to open and transparent dialogue with shareholders and will continue to engage with them to understand their views and concerns regarding this resolution as part of their planned review of the group’s remuneration policy this year.”
Shares in the group fell 2.4% to £20.30 after it reported “positive momentum” coming into 2022 had continued.
But Morgan Sindall also warned in its latest trading update that inflationary pressures and supply issues “remain a significant challenge across the group”, with an already difficult trading environment exacerbated by the conflict in Ukraine.
Mr Morgan added: “Despite the current market headwinds, we’re well-positioned for the future.
“Our high-quality secured workload and operational delivery capabilities give us great confidence for the rest of the year.”
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