Aegis Boss Has Pay-Off Turned Down By Shareholders

Aegis shareholders yesterday rejected the remuneration packages put forward by the media buying and research firm that would see its chief executive, Doug Flynn, receive a £2.35 million pay-off.

At yesterday’s annual general meeting, the National Association of Pension Funds, 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.

Back in 2003 Flynn was paid around £588,00 plus a cash bonus of a further £588,000, giving a total pay off in excess of £2.3 million, according to a report in today’s 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.

Aegis Group: 020 7070 7700 www.aegisplc.com

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