Tobacco giant Imperial Brands PLC (LON:IMB) has bowed to pressure from shareholders and scrapped a planned pay hike deal for its key executives.
The FTSE 100-listed firm said that, following consultations with shareholders, it no longer intends to seek shareholders' approval for a change in its Directors' Remuneration Policy at next week’s annual general meeting.
The group behind the JPS cigarettes and Golden Virginia tobacco brands said “its associated metrics as approved by shareholders at the AGM held in 2015 will continue to apply.”
Imperial's chairman Mark Williamson said: 'We have been actively engaging with shareholders for some time and while we received considerable support, it is clear that views have changed over that time and that the right course of action now is for the Board to withdraw the resolution.
He added: “The Board continues to believe that revising the policy is necessary for retaining and attracting the right calibre of talent to ensure the continued sustainable growth of the business and we will reengage with shareholders to reach a consensus on this important issue.”
Investor anger allayed ...
The firm has 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 suggested Cooper would have been in-line for a £3mln hike to the £5.5mln pay packet she received last year.
Imperial’s move could put pressure on other big businesses to follow suit and rein in big hikes in executive pay amid political as well as shareholder pressure.
The tobacco firm holds its AGM on Wednesday, February 1.