GLI FINANCE (GLI) has pledged to reform the way it pays bonuses following shareholder opposition to executive pay packages.
The alternative finance investor had revealed in its 2018 annual report that its executives were collectively paid £784,250 in bonuses last year, but 10.34 per cent of shareholders appeared to oppose the move by voting against its remuneration report.
The pay awards were still passed, but in response to shareholders’ concerns, GLI said that there would be new bonus terms for 2019 that would only be awarded after the annual report is released.
“Following feedback received in the weeks preceding the annual general meeting, the board, in consultation with the remuneration committee has come to an agreement on new executive and senior management bonus terms which will be incorporated into the company’s remuneration policy for 2019 and thereafter,” GLI said in a stock market update.
“This includes ensuring the payment of any bonuses will only be made once the year-end accounts have been finalised and announced, and that bonuses will be directly linked to profits.
“The remuneration committee believes this will ensure greater alignment with shareholder returns.”
Read more: GLI to close supply finance platform
The annual report showed that chief operating officer Aaron le Cornu was given a £100,000 sign-on bonus, plus £46,350 in discretionary cash bonuses over the course of the year. His salary was fixed at £150,000.
Chief financial officer Emma Stubbs earned a total of £92,700 in cash bonuses and share holdings, on top of her £154,500 salary.
Managing director Dan Walker was given a £25,000 sign-on bonus, plus shares and cash bonuses to the value of £150,000. His salary was also fixed at £150,000 per year.
The opposition to the awards comes despite the annual report stating that the bonus scheme reflects “shareholders’ approved terms for a revised long-term incentive scheme”, as agreed at the 2017 annual shareholder meeting.
The new terms included an option for executive members to buy company shares at favourable rates of 25p, 30p and 35p. The additional cash bonuses were paid “for duties performed during the year ended 31 December 2018.”