Weir Group shareholders slap down ‘golden handcuff’ deal for bosses

The rebellion saw a plan that would have handed share awards to executives simply for remaining with the company, regardless of its performance, dismissed out of hand at the gathering in Glasgow.

Speaking after the AGM, Weir Group chairman Charles Berry confirmed that the ‘golden handcuffs’ policy would now be scrapped.

The proposals had called for all 260 senior executives of the company, which makes valves and pumps for the energy and mining industries in more than 70 countries and is one of Scotland’s biggest employers, to be been awarded shares regardless of their performance in a bid to “more closely align senior management incentives with shareholder interests”.

The shares would have vested in increments of thirds in years three, four and five.

In return, there would have been a reduction in the maximum award available to the most senior executive director from 250 per cent of salary to 165 per cent.

Under the proposal, chief executive Keith Cochrane would have been awarded shares equivalent to 90 per cent of his salary, with 80 per cent awards going to other executive directors.

The episode is the latest in a trend of shareholder rebellions over excessive executive pay has gathered pace recently with Weir Group joined by Shire, Standard Chartered and Reckitt Benckiser as targets for investors.

Last month, 59 per cent of BP shareholders voted against a 20 per cent pay rise for chief executive Bob Dudley, that would have netted him £14m despite huge losses for the energy giant.

It was also announced yesterday that the boss of Irn-Bru maker AG Barr saw his total pay drop 22 per cent last year after the company opted not to pay annual bonuses following a below-target performance.

In the 12 months to the end of January 2016, Roger White received total remuneration of £837, 000 – down from £1.08 million the previous year, when he received a £320,000 bonus.

This week it also emerged that Pensions & Investment Research Consultants (PIRC), the corporate governance group, has urged shareholders in Royal Bank of Scotland to vote against the bank’s remuneration report at the lender’s AGM in Edinburgh on Wednesday.