Restaurant Group PLC's (LSE:RTN) (TRG) largest shareholder, Columbia Threadneedle Investments, says it will support the management team ahead of the group’s annual general meeting (AGM) later this month.
The Wagamama owner is facing a rebellion from numerous activist investors concerned about the group’s poor share price performance and the salary of chief executive officer, Andy Hornby.
Columbia Threadneedle, which owns 19% of TRG, remains confident of Hornby’s abilities saying that recent years have been a tough environment for much of the hospitality industry.
“As a long-term shareholder in TRG, we remain supportive of TRG's board and management team, who have successfully navigated the exceptionally tough industry backdrop.
"The board continues to receive our support as they assess the best options to deliver long-term shareholder value,” the investment firm said in a statement.
Hornby’s pay packet which reached upwards of £670,000 in 2023 has specifically come under scrutiny after 12.3% stakeholder, Oasis Capital Management, called his salary “disproportionate” and “tone deaf”.
With the AGM set for 23 May there is a growing likelihood of a substantial vote against TRG’s remuneration report.
Glass Lewis, a top proxy advisory firm, has advised shareholders to vote against management’s pay.
It said that there was a “misalignment between the wider stakeholder experience and executive pay,” after the group agreed bonuses for its corporate executives despite “not meeting any of its financial targets”.
Shares in TRG dropped more than 2% on Thursday after opening at just under 51p, a significant jump compared to the 33p value seen at the start of 2023.