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Safestore latest firm to bow to shareholder pressure and scrap AGM move to hike directors' pay

Published: 09:25 21 Mar 2017 GMT

Boardroom
Last week, defence firm Chemring also saw its plans for changes to directors pay shot-down ahead of its AGM

In what looks to be a growing trend, another company has been persuaded to back down on changes to its directors’ remuneration policy under pressure from some big shareholders.

Following on from recent similar announcements by Chemring Group PLC (LON:CHG), self-storage provider Safestore Holdings PLC (LON:SAFE) said today that after consultations with shareholders it will no longer be seeking shareholder approval to change its directors' remuneration policy and long-term incentive plan at its annual general meeting tomorrow.

READ: Chemring withdraws AGM resolution …

In a statement, the FTSE 250-listed firm’s chairman, Alan Lewis said: "After an extensive consultation process which resulted in amendments to and tightening of performance conditions, the Board had proposed a new and innovative long term incentive plan.”

However, he added: “While we have received considerable support from shareholders on the proposed structure it is clear that for others concerns remain. Under these circumstances the Board considers it appropriate to withdraw the remuneration proposals.”

Lewis concluded: “The Board will continue to engage in dialogue with shareholders to find a solution that best meets the needs of all."

As a result, Safestore said, the existing Directors' Remuneration Policy as approved by shareholders at its 2014 AGM will remain in place to October 31 2017 during which time the company will seek shareholder approval for a new Directors' Remuneration Policy.

In early trading, shares in Safestore were 0.1%, or 0.4p higher at 376.70p.

Last week, defence firm Chemring also saw its plans for changes to directors pay shot-down ahead of its AGM, withdrawing the proposals following consultations with shareholders.

The trend seemed to start at the end of January when tobacco giant Imperial Brands PLC (LON:IMB) bowed to pressure from shareholders and scrapped a planned pay hike deal for its key executives.

READ: Imperial bows to shareholder pressure …

The FTSE 100-listed firm had faced anger from investors about its plans to increase the pay of chief executive Alison Cooper - one of only seven FTSE 100 female bosses – as well as that of finance director Oliver Tant, and chief development officer Matthew Phillips.

Reports had suggested Cooper would have been in-line for a £3mln hike to the £5.5mln pay packet she received  last year.

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