Board members of Restaurant Group PLC (LSE:RTN) (TRG), owner of restaurant chain Wagamama, received a large proportion of votes in favour of their dismissal after a group of activist investors slated management over their pay.
Zoe Morgan, the remuneration chair and independent non-executive director, received 75.68% of votes in favour of re-election – avoiding removal by less just over 25%.
Morgan was a target of Oasis Management, TRG’s second-largest shareholder, which said it would be voting against her re-election.
Chairman, Ken Hanna, also only received 76.94% of votes in favour, with TRG now beginning consultations with shareholders to rectify any concerns about management.
In a non-binding vote, however, other shareholders joined the rebels with 45% voting against the group’s 2022 remuneration report and 35% against the restaurant group's remuneration policy
The anger with the board, which has been shared by three other activist investors, largely stems from chief executive officer, Andy Hornby’s pay which saw him take home close to £800,000 plus £700,000 in shares last year.
The pay and bonuses for the food company’s board were handed out despite the group making a loss of £86.8mln in 2022, with shares down more than 10% in the last twelve months.
Andy Hornby, known for his role as boss at HBOS in 2008 when the bank collapsed, also experienced some pushback on his re-election vote, getting only 84% of votes in favour.
Management will be happy that two of its three largest shareholders, Columbia Threadneedle and Royal London, both used their 23% of voting power to support the leadership team.
Shares in TRG dropped by 2.5% on Tuesday after opening at 49.4p.