One of the three founders of Melrose Industries PLC (LON:MRO) has signalled his intention to quit amid continued disquiet over executive pay and the handling of the company’s £8bn takeover of GKN.
In a brief statement ahead of the company’s annual meeting, which reaffirmed earnings and margins guidance, it was confirmed executive vice-chairman David Roper will step down at the end of May next year.
Along with Christopher Miller and Simon Peckham, the 70-year-old set up the business and was chief executive from the company’s 2003 float to 2012.
The announcement of Roper’s exit comes as shareholder lobby group PIRC urged the FTSE 100 group's backers to vote against the remuneration report later Thursday. Reports suggest management will comfortably see off any rebellion.
Last year 22% voted against pay and perks at Melrose after four executives received £170mln in salary, pension payments and bonus shares.
More modest pot
This time around the pot is a more modest £3.1mln. Eyes instead will be on 2020, when a long-term incentive plan starts paying out.
Current trading, meanwhile, was described as being in line with the board’s expectations.
Melrose said it is delivering the “operational improvements” (corporate speak for cost cuts) that will ensure GKN’s margins hit the levels outlined at a recent capital markets event for analysts and investors.
Last month Melrose came under fire for from MPs for its decision to shut GKN's Kings Norton plant.
The company’s chairman, Justin Dowley, said Thursday: "We have recently laid out our targets for GKN which are better than those we indicated only one year ago at the time of the acquisition, and which come on the back of a stronger performance than expected in the first year of ownership.”