Construction giant Kier has suffered a brutal investor backlash over its chief executive’s pay.
Almost half of shareholders voted against its directors’ pay report on Thursday, which handed Andrew Davies an inflation-busting 70 per cent increase.
His total pay rose from £1.32million to £2.24million in its last financial year, including a £739,000 bonus.
Scrutiny: It is Kier’s second successive shareholder revolt, with more than a quarter of its investors voted against its pay proposals last year
The rebellion follows comments from Prime Minister Rishi Sunak who last week urged fat cat bosses to moderate their financial rewards during the cost-of-living crisis. He said: ‘I would say to executives to embrace pay restraint at a time like this and make sure they are also looking after all their workers.’
It is Kier’s second successive shareholder revolt. More than a quarter of its investors voted against its pay proposals last year.
But the 44 per cent vote at its latest annual general meeting made it one of the most significant revolts this year – and will put it on the Investment Association’s ‘list of shame’ once again.
Excessive pay awards have triggered anger in recent months – a theme likely to intensify as the UK’s recession worsens.
At equipment hire group Ashtead, nearly a third of investors voted against chief executive Brendan Horgan’s £6.6million package.
Kier’s share price has fallen by almost half in the past year and the company is now worth £283million.
A spokesman for the firm said the ‘remuneration committee will reflect carefully’ on points raised and publish an update within the next six months.
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