Aegis shareholders yesterday voted against the company’s remuneration report which would see chief executive, Douglas Flynn, getting a £2.35 million ‘payment for failure’, according to reports in The Independent.
At yesterday’s annual general meeting, the National Association of Pension Funds (NAPF), led shareholders of the media buying agency, to vote against the severance payment, which would see Flynn’s remuneration reach two years’ salary plus twice his annual bonus. In 2003, he was paid £588,00 plus a cash bonus of another £588,000, giving a total pay off £2.35 million, says
The Independent.
A separate pay off deal was put together in the event of Aegis being taken over. In this circumstance, Flynn would get two years’ salary plus an amount equal to his bonus paid over the last 12 months, plus benefits of £32,000, giving him pay off of £1.8 million.
According to reports, Aegis is understood to be surprised by the actions taken by NAPF and has said it will now consult with shareholders.
An NAPF spokesman said: “There are obviously concerns from the shareholders and the company would do well to listen to them.”
Despite shareholder upset, Aegis announced yesterday that trading for the first four months of this year has been positive as the advertising market recovery takes hold in all of the Group’s key markets (see Ad Market Recovery Improves Aegis Trading).
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